SCSS+MIS VS BANK FD

[Krishnendu Mondal]

Which investment is more profitable??? If i invest 10 lakh rupees in SCSS and quarterly interest amount also invested in MIS for 5 years VS whole 10 lakh rupees invested in FD with best interest rate for senior citizens.

 

[17ysaurabh]

First, let me briefly share the interest rate for each of these.

1. Monthly Investment Scheme(MIS):
Interest rate: 7.4%
Investment in Post Office.

2. Senior Citizen Saving Scheme (SCSS):
Interest rate: 8.2%
Investment in Post Office.

3. Fixed Deposit for Senior Citizens:
Interest rate: 7 - 9%
Investment in any bank.

Clearly, MIS is out of race.
Next,
In SCSS, you will have to reinvest the interest received in each quarter in some investment scheme which is quite a hassle.
In FD, you need to split Rs. 10 lakhs into 3 parts (each less than 5 lakhs) and then invest it into 3 different banks with the highest interest one time.

So, I think whether you see returns-wise or efforts-wise, FD seems a better choice for senior citizens if you want to grow the amount.
SCSS can be preferred when you actually need the interest amount for your needs.

I hope it helps!