Know more about the Senior Citizen Savings Scheme

fixed deposit

As your age moves forward to the age of retirement, you tend to spend less and save more. This tendency is mostly due to the insecurities that you may have about your financial health after retirement.

However, you need not worry about it as some investment schemes in the market are specially made for senior citizens. One among them is SCSS, i.e., Senior Citizen Saving Scheme.  A small savings scheme that is specially designed for senior citizens, SCSS allows you to earn handsomely after retirement by providing a high interest rate for your savings.

Also, this scheme is introduced by the Indian government and its returns are unaffected by changing market conditions.

Moreover, you can also save taxes up to Rs. 1,50,000 every year by investing in SCSS. Despite being such a lucrative scheme on paper, SCSS has its limitations as well. The first limitation is the provision of a single tenor option that is of 5 years.

The withdrawal rules are also slightly regressive as you are allowed to withdraw your deposits only post completion of 1 year from the date of deposit. Also, you have the option of withdrawing interest after every quarter and you might like to have more options when it comes to interest payouts.

To find a permanent solution to all these limitations you can accumulate your earnings and deposit them in Bajaj Finance FD. Offered by a credible financier like Bajaj Finance, this FD scheme caters to the needs of most investors.

Apart from providing a flexible tenor range between 12 and 60 months, it also offers a high-interest rate and comes with user-friendly investment and withdrawal norms that most FD schemes fail to provide.

The reasons that make it a profitable alternative to senior citizens are mentioned below:

Higher Returns for Senior Citizens

Bajaj Finance FD helps senior citizens to earn sufficient returns by providing them an excess FD interest rate of 0.25%.

The option of choosing interest withdrawal frequencies between monthly, yearly, quarterly, and six-monthly interest payouts on investing in non-cumulative FDs makes it even better as you can utilize these options to take care of your post-retirement financial needs. 

You can use the fixed deposit rates calculator that is available on its website to predict your returns before investing. 

Multi-deposit Facility

You don’t have to commit all your savings in a single fixed deposit scheme as Bajaj Finance FD lets you bifurcate your corpus into chunks of smaller amounts to invest them in different FD plans simultaneously.

You also have the liberty of choosing a unique FD type and lock-in period for each of your deposits.

By doing so, you can even out the influence of changing interest rates on your investment and you can also rejoice over the fact that you will have the option to liquidate your funds more often. You may even invest in cumulative and non-cumulative FDs at once to attain your short-term needs and long-term financial strategies smoothly. 

Withdrawal Rules

You may withdraw your funds anytime after investing in Bajaj Finance FD after completion of the initial 3-month period. With the alternative of opting for a loan against FDs, you may never feel the need to liquidate your deposits prematurely. 

Also, it is a stable investment alternative as confirmed by reputed and renowned credit rating agencies like CRISIL and ICRA. Therefore, your capital will be perfectly safe in this fixed deposit scheme

Though the Senior Citizen Saving Scheme is one of the best options for ensuring high returns along with stability for your investments post-retirement, it still has some limitations when it comes to tenor options, withdrawal terms, interest payout options, etc.  To find an answer to all these limitations, you can invest your savings in Bajaj Finance FD.

This FD scheme provides not only high interest rates of up to 6.75% to senior citizens but also gives multiple interest payout options to solve their issue of lack of regular income.

You need not think much before investing in this FD scheme as CRISIL and ICRA have rated it highly for protecting the capital of investors.

Comparison between Bajaj Finance Fixed Deposit and Senior Citizen Saving Scheme

Lock- in of 5 years

SCSS requires a lock-in period of five years and without flexibility of withdrawal with just a one-time account extension of up to 3 years is allowed. Whereas, Bajaj Finance Fixed Deposits offer flexible tenors ranging from 12-60 months. 

Investment Limit

The maximum investment in SCSS is Rs.15 lakhs. On the other hand, Bajaj Finance Fixed Deposits allow you to invest up to 1 crore. 

Method of  Investment

To deposit an amount exceeding Rs.1 lakh for SCSS you need to use a cheque/demand draft to make a deposit. A fixed deposit account opening is possible online easily.

Bajaj Finance offers the facility of online FD account and you can utilise online FD returns calculator before investing.


A Hindu Undivided Family (HUF) is prohibited from opening an SCSS account. They can invest in Bajaj Finance Fixed Deposits.

Interest payout frequency

You can opt for periodic interest payout like monthly, quarterly, half-yearly or annually with Bajaj Finance Non-cumulative FDs but these options are not available with SCSS accounts.

Availability of Loan facility

Investors can avail for a loan against their Bajaj Finance FDs whereas such a plan is not available in SCSS.

Author Bio:

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.