If you have Rs 10 lakh to invest, choosing the right option can make a big difference to your returns. Fixed Deposits (FDs), Senior Citizens’ Savings Scheme (SCSS), and Real Estate Investment Trusts (REITs) are popular options—but which one gives you the best earnings? Let’s break it down with a clear comparison.

1. Fixed Deposits (FDs) – Safe and Steady

FDs are the most traditional investment choice, offering guaranteed returns with almost zero risk. Suppose you invest Rs 10 lakh at an interest rate of 6.5% per annum for 5 years:

· Interest earned: ~Rs 3,55,000

· Total maturity amount: ~Rs 13,55,000

FDs are ideal for risk-averse investors but may not beat inflation over the long term.

2. Senior Citizens’ Savings Scheme (SCSS) – Higher Returns for Seniors

For senior citizens, SCSS provides higher interest rates along with government security. Assuming an interest rate of 8% per annum for 5 years, investing Rs 10 lakh would yield:

· Interest earned: ~Rs 4,58,000

· Total maturity amount: ~Rs 14,58,000

SCSS is a safe option with tax benefits under Section 80C and is especially suited for those above 60 looking for steady post-retirement income.

3. Real Estate Investment Trusts (REITs) – Potentially Higher Returns

REITs allow investors to earn from commercial real estate without owning property directly. While riskier than FDs or SCSS, REITs can offer annual returns of 8–12%. Investing Rs 10 lakh in a REIT with an assumed 10% annual return for 5 years could give:

· Returns earned: ~Rs 6,10,000

· Total value: ~Rs 16,10,000

However, REITs are market-linked, so returns can fluctuate depending on the real estate sector and market conditions.

4. Key Takeaways

· FDs: Best for risk-averse investors; guaranteed but lower returns.

· SCSS: Ideal for senior citizens; slightly higher guaranteed returns plus tax benefits.

· REITs: Higher earning potential; suitable for investors willing to accept market risks.

📌 Final Word

If your goal is safety, FDs and SCSS are ideal. If you aim for higher growth and can tolerate market fluctuations, REITs are the better choice. The key is to align your investment with your risk appetite, time horizon, and financial goals.

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.