Managing finances post-retirement is all about balancing safety, income, and smart tax planning. For senior citizens in India, the Senior Citizen Savings Scheme (SCSS) remains a trusted government-backed investment option that provides quarterly payouts and tax deductions under Section 80C.

But SCSS alone may not always be enough—especially for those with higher investible surplus or looking for stable, non-tax-saving instruments. That’s where Bajaj Finance Fixed Deposits (FDs) step in, offering senior citizens interest rates of up to 7.30% p.a. along with flexible payout options.

Let’s explore how the Senior Citizen Savings Scheme works, how it compares with other savings products, and how you can complement it with Bajaj Finance FDs to secure your golden years.

What Is the Senior Citizen Savings Scheme?

The SCSS is a fixed-income government scheme designed for individuals aged 60 and above. It offers attractive interest rates and quarterly payouts, making it ideal for retirees who seek regular income without taking on market risk.

You can open an SCSS account at authorised post offices and selected bank branches. Backed by the Government of India, it’s among the safest investments available to seniors.

Key Features of SCSS

● Eligibility:

○ Indian citizens aged 60+

○ Retired government employees aged 55–60 (conditions apply)

○ NRIs and HUFs are not eligible

● Investment Limits:

○ Minimum: Rs. 1,000

○ Maximum: Rs. 30 lakh

● Interest Rate:

○ Reviewed quarterly; currently around 8.2% p.a. (subject to change)

○ Paid quarterly

● Tenure:

○ 5 years, extendable by 3 more years

Tax Benefits Under Section 80C

One of SCSS’s main appeals is its tax benefit under Section 80C of the Income Tax Act:

● Deduction up to Rs. 1.5 lakh per year on principal investment

● Interest income is taxable, and TDS applies if interest exceeds Rs. 50,000/year

● Form 15H can be submitted to avoid TDS if annual income is below the taxable limit

Why Pair SCSS with Bajaj Finance Fixed Deposit?

While SCSS helps with tax saving and regular income, its Rs. 30 lakh cap and fixed tenure can be limiting. That’s where a Bajaj Finance Fixed Deposit becomes a smart secondary option—ideal for safe, stable returns beyond the SCSS limit.

Bajaj Finance FD: Key Highlights

● Interest Rates:

○ Up to 6.95% p.a. for customers below 60

○ Up to 7.30% p.a. for senior citizens

● Flexible Tenure Options:

Choose between 12 and 60 months

● Payout Modes:

Monthly, quarterly, half-yearly, or cumulative

● Highest Safety Ratings:

○ CRISIL: AAA

○ ICRA: AAA

● Convenient Online Booking:

Easy, paperless, and secure

Want stable returns post-retirement? Start your Bajaj Finance FD and enjoy up to 7.30% p.a. as a senior citizen.

 SCSS vs Other Investment Options

How to Open an SCSS Account

1. Visit a post office or authorised bank.

2. Submit age and ID proof (Aadhaar, PAN, etc.)

3. Fill in the SCSS form and provide photos.

4. Make the initial deposit (up to Rs. 30 lakh).

5. Start earning interest from the date of deposit.

Things to Know Before You Invest

● Premature Withdrawal: Allowed after 1 year (with penalties).

● Nomination: Can be added at the time of account opening.

● Joint Holding: Only with spouse.

● Extension Option: Extend by 3 years post maturity.

● Reinvestment: Matured funds can be reinvested in SCSS or a Bajaj Finance FD for continued returns.

Conclusion

The Senior Citizen Savings Scheme is a trusted investment that offers a mix of government assurance, tax benefits, and regular payouts. But it need not be your only plan.

By pairing SCSS with a Bajaj Finance Fixed Deposit, you can enjoy the best of both worlds—tax savings through SCSS and high fixed returns through Bajaj FDs, especially with interest rates up to 7.30% p.a. for senior citizens.

Create a steady, diversified retirement income stream. Book your Bajaj Finance FD online in just a few steps.

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Published on June 30, 2025