Senior Citizen Investment Options – Bonds vs SCSS vs FD

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Retirees in India are usually searching for schemes that offer high safety and generate a regular flow of income. Their biggest concern is “outliving their savings”, which naturally pushes them toward conservative options. 

Are you amongst them? At this stage in life, like most seniors, you may also want to avoid market-linked volatility. If you are on the lookout, this article talks about some popular senior citizen investment options. 

In your golden years, you may consider bonds, the Senior Citizen Savings Scheme (SCSS), and Fixed Deposits (FDs). These options are built to give you a comfortable retirement and a regular income. Read this article to first understand these options in detail and then check out a detailed senior citizen savings schemes comparison for maximum clarity. 

What are Bonds for Seniors?

Bonds for seniors are investment options specifically designed for retirees who want safety + a regular income. Usually, these bonds are issued by:

• Government of India
• Public sector companies
• Private companies (corporates)

For those unaware, a bond is a type of loan. But in this case, you are the lender. When you buy a bond, you give your money to the government or a company. In return, they will:

• Pay you interest at regular intervals (monthly, quarterly, or yearly).

and

• Return your original investment (principal) when the bond matures.

As a senior citizen, you may consider the following types of bonds:

1. RBI Floating Rate Savings Bond (FRSB)

FRSB is a government-backed bond with a 7-year tenure. These bonds do not have a fixed interest rate and instead offer “floating” returns. The interest rate of FRSB changes every six months and is linked to the National Savings Certificate (NSC) rate. 

To decide the bond’s interest rate, the government uses this formula:

• FRSB Interest Rate = NSC Rate + 0.35% p.a. spread

As of November 16, 2025, FRSB is offering an interest rate of 8.05% p.a. [7.70% (NSC rate) + 0.35% (spread)], which is due to be revised in January 2026. Please note that government bonds (including RBI bonds) do not need credit ratings because they usually carry a sovereign guarantee. 

2. Fixed-Rate Bonds

These are corporate bonds that pay a fixed interest rate for the full tenure. They can be issued by the government or private companies. Senior citizens usually choose.

• Government fixed-rate bonds like Government Securities (G-Secs)

or

• AAA or AA-rated corporate bonds

These options are considered high-yield investments for retirees, which may offer competitive returns and, at the same time, offer capital protection.

What is the Senior Citizen Savings Scheme (SCSS)?

SCSS is a savings option offered by the Government of India (GoI) specifically to people aged 60 and above. This scheme is backed by a sovereign guarantee, making your investments 100% safe. 

Additionally, this is a debt product and carries no market risk. The duration of the scheme is 5 years, and the interest is paid every quarter. After you invest, your interest rate stays fixed for the full 5-year period. The GoI revises the SCSS interest rate every quarter. As of November 16, 2025, the interest rate for the October–December 2025 quarter is 8.20% per annum.

For more clarity, let’s check out some key features of SCSS investment 2026:

Note: The interest rate, deposit limits, and other features are valid as of November 16, 2025. Investors must do their own research before investing.

What are Fixed Deposits for Senior Citizens?

Apart from bonds for seniors and SCSS, several investors still consider fixed deposits in their golden years. It is a traditional savings product, where you:

• Deposit money for a particular duration
• Receive fixed interest
• Get your full principal at maturity

These FDs can be issued by large-scale banks, small finance banks, and even NBFCs (Non-Banking Financial Companies). Several financial institutions even offer a comparatively higher interest rate to senior citizens over their regular customers. 

Senior Citizen Savings Schemes Comparison: Bonds vs SCSS vs FD

Realise that bonds, SCSS, and FDs are all senior citizen investment options, but each one plays a different role in a retiree’s financial life. As a new investor, you may wonder which one is “better.” But you can pick the right scheme only when you understand how they differ in terms of safety, returns, and liquidity. 

To improve your understanding, check out the detailed senior citizen savings schemes comparison below:

In Conclusion, Bonds, SCSS, and FDs are High-Yield Investments for Retirees

Till now, you must have understood that bonds, SCSS, and FDs are popular senior citizen investment options, but vary in terms of risk, liquidity, and returns. Below is a quick recap of how they differ:

• SCSS offers the highest safety through a sovereign guarantee.
• Government bonds may provide long-term stability, while corporate bonds offer comparatively higher returns.
• Bank FDs may offer flexible tenures,  extra interest for seniors, and come with ₹5 lakh insurance cover.
• Corporate FDs can offer relatively higher yields, but their safety depends on the issuer’s credit rating.

If you are looking to earn competitive returns in your golden years, you may visit the GoldenPi platform. Here you can explore corporate FDs, corporate bonds, and even apply to the latest NCD IPOs. Also, investments can be made online from the comfort of your home. No branch visits required.

Senior Citizen Investment Options FAQs

1. What are credit ratings?

Credit ratings show how safe a bond is. They indicate the ability of the issuer to repay your money. Usually, these ratings are given by credit rating agencies like CRISIL, ICRA, and CARE. A common ratings scale ranges from AAA (highest safety) to D (junk/default).

2. Are small finance bank FDs safe?

Small finance banks are scheduled commercial banks. All their deposits (FDs, recurring deposits, and savings account balances) are insured up to ₹5 lakh by DICGC (Deposit Insurance and Credit Guarantee Corporation).

3. How to invest as a senior citizen in 2026?

You can easily invest online through the GoldenPi platform. Here, you’ll find several AAA-rated bonds, PSU bonds, and Small Finance Bank and NBFC FDs. To begin, all you must do is complete your KYC, explore the available options, and lastly, make the payment.

4. Does RBI regulate the Senior Citizen Savings Scheme (SCSS)?

No, the RBI does not regulate SCSS. This scheme is managed by the Ministry of Finance and carries a sovereign guarantee.  

5. Do RBI guidelines for fixed deposits apply to SCSS in 2026?

No, RBI guidelines and monetary policy changes (such as revisions in repo rates) do not directly influence the SCSS scheme. The interest rate of SCSS is reset by the Ministry of Finance every quarter.

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Disclaimer:

This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.

Bonds or non-convertible debentures (NCDs) are regulated by the Securities and Exchange Board of India and other government authorities. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.

Latest Updated: 21-02-2026