SCSS: Steady and secure income after retirement, guaranteed by the Government

SCSS: This government initiative is known as the Senior Citizen Savings Scheme (SCSS). It is regarded as one of the most advantageous investment options for ensuring a secure and stable income post-retirement.

Know about the Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) provides fixed returns for retirees, allowing them to invest without any associated risks. Managed by the government, this scheme offers the highest interest rates among small savings programs, making it an appealing choice for seniors looking to enhance their savings. Participants in the SCSS receive an annual interest rate of 8.2 percent. This scheme not only helps senior citizens safeguard their retirement funds but also ensures a consistent income stream. Individuals can establish SCSS accounts either solely or jointly with their spouses.

Maximum deposit of Rs 30 lakh

Each account permits a maximum deposit of Rs 30 lakh, with a minimum investment requirement of Rs 1,000. Cash deposits are allowed up to Rs 1 lakh, while amounts exceeding this limit must be submitted via cheque. Retired couples can maximize their benefits by opening separate SCSS accounts, effectively increasing their investment ceiling to Rs 60 lakh.

This arrangement yields a quarterly interest of Rs 1,20,300, translating to an annual interest income of Rs 4,81,200. Over a five-year period, the total interest accrued upon maturity will amount to Rs 24,06,000. Thus, by investing Rs 60 lakh across two accounts, one can expect to receive Rs 24 lakh in interest after five years.

What would be the profit from an investment of up to Rs 30 lakh in a single account?

Quarterly interest – Rs 60,150

Annual interest – Rs 2,40,600

Total interest over five years – Rs 12,03,000

Total maturity amount – Rs 42,03,000.

Disclaimer

This is general information based on available online sources. Please verify before making any transactions. Times Bull is not responsible for any financial investments made, as it is entirely your responsibility. For better results, please consult a financial advisor.