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NSC vs SCSS for senior citizens: Which small savings scheme offers better returns, safety and tax benefits in 2026?
Mint 53 min ago·5 Nov 2026, 9:55 am
The National Savings Certificate (NSC) and Senior Citizens Savings Scheme (SCSS) are two popular government-backed options for safe investing. The key difference lies in their structure: NSC is a fixed deposit with a lock-in period of five years, while SCSS is specifically designed for retirees and offers quarterly interest payouts. Both are backed by the government, making them virtually risk-free, but they differ in tax treatment and how interest is paid out.
For investors, the choice depends on cash flow needs. If you prefer a lump sum at maturity, NSC is suitable. However, SCSS is better for those seeking regular income, as it pays interest directly to the bank account. Both schemes offer tax deductions under Section 80C, but the interest earned is taxable. Investors should weigh the need for steady income against the benefit of a lump-sum payout when deciding between the two.
Excerpt from Mint
NSC vs SCSS in 2026: Compare interest rates, five-year returns, investment limits, safety and tax benefits of these government-backed savings schemes. Find out which option offers better maturity proceeds and which provides senior citizens with regular retirement income. If you are a senior citizen looking to invest…Read the original at Mint
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