Rs 7 lakh investment in SCSS vs SBI senior citizen FD: How much quarterly amount can senior citizens get for 5 years in each scheme?

Many senior citizens looking for a stable income source from their investments invest in the Senior Citizens’ Savings Scheme (SCSS) and bank fixed deposits (FDs). The SCSS comes with a five-year maturity period, senior citizen FD tenures range from 7 days to 10 years.

Both investment schemes offer interest on deposits. While the SCSS offers payout every quarter, an FD generally offers interest on maturity. However, an investor can opt for a quarterly FD payout depending on investment conditions. All public sector, private sector and small finance banks offer senior citizen FDs of different tenures. State Bank of India (SBI) also offers a 5-year senior citizen FD. In this write-up, we will compare the estimated quarterly payout senior citizens can get on investing Rs 7 lakh each in the SCSS and the 5-year SBI FD.

SCSS vs SBI senior citizen FD: Interest rate comparison

The Senior Citizens’ Savings Scheme offers an interest rate of 8.2% per annum. The interest is paid every quarter, making it an option for senior citizens who need regular cashflow from their investments.


SBI is offering a 7.05% interest rate on its 5-year senior citizen FD.


Also read: FD rate hike calculator: Check extra maturity you can get on Rs 1 lakh-Rs 10 lakh deposits

SCSS vs SBI: How much quarterly interest can senior citizens get from Rs 7 lakh investment for five years?

At an interest rate of 8.2% per annum, a Rs 7 lakh investment in the SCSS can give you a quarterly interest of approximately Rs 14,350. The payment schedule.

The total interest earned in five years will be approximately Rs 2,87,000 and the maturity value will be around Rs 9,87,000.

How much can you earn from a Rs 7 lakh SBI senior citizen FD?

At an interest rate of 7.05%, SBI’s senior citizen FD offers a lower rate than the SCSS. In the SBI FD, a Rs 7 lakh investment can give you an estimated quarterly payout of Rs 12,337 for five years.

In five years, the total interest amount will be approximately Rs 2,46,750.


Also read: Sukanya Samriddhi Account interest rate: Has government changed SSA rate from 8.2% for October-December 2026 quarter?

SCSS key features

SCSS interest is payable on March 31, June 30, September 30 and December 31 every year. The amount is credited to the depositor’s savings account on April 1, July 1, October 1 and January 1, respectively.

The scheme can therefore help senior citizens meet recurring expenses without having to withdraw money from their original investment to fund those expenses.