For many retirees in India, generating a reliable income post-retirement is essential. Two common options are bank fixed deposits (FDs) and the Senior Citizens' Savings Scheme (SCSS). As of April-June 2026, SCSS offers a competitive interest rate of 8.2% per annum, which is generally higher than the 7% to 7.75% offered by most senior citizen FDs. SCSS is available to Indian residents aged 60 and older, as well as certain retirees aged 55-60 and defense personnel over 50. It allows a minimum deposit of ₹1,000 (roughly $12 USD) with a cap of ₹30 lakh (approximately $36,000 USD) and a fixed tenure of five years, extendable by three years. In contrast, FDs provide greater flexibility with no cap on contributions and various tenure options. While SCSS provides quarterly payouts, FDs allow for monthly, quarterly, half-yearly, or annual payouts, depending on the depositor's preference. Ultimately, retirees should consider their income needs and investment flexibility when choosing between these two options.