The government has a special scheme for senior citizens called the Senior Citizen Savings Scheme (SCSS). If you invest in this scheme, you will have a safe future and earn good returns. Let’s see the details of this scheme.
What is SCSS?
The Senior Citizen Savings Scheme (SCSS) is a savings plan by the Government of India. It is made to give financial security to senior citizens. The scheme is safe because the government supports it. Its main aim is to give regular income after retirement.
🚨 Finance Ministry kept interest rates of small saving schemes unchanged for the Oct-Dec 2024 quarter, with Sukanya Samriddhi and Senior Citizen Savings Scheme offering 8.2% interest rate.
Rates unchanged for PPF, Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana pic.twitter.com/pdK7eID4qs
— Famy ⚡ (@FamyRasheed) October 1, 2024
How It Works
The scheme gives 8.2% interest per year. You can start with Rs 1,000 and invest up to Rs 30 lakh. If a senior citizen invests Rs 30 lakh, they can earn Rs 12.3 lakh in five years. Interest is paid every three months. This means you will get Rs 61,500 every three months, and the total interest in five years will be Rs 12,30,000.
The scheme lasts for five years, and you can extend it for three more years. Any citizen aged 60 or above can invest. Retired government and defense staff can invest earlier with some rules. Investments up to Rs 1.5 lakh get tax benefits under section 80C. Interest is taxable, and if it is more than Rs 50,000 a year, TDS will be taken.
SCSS is safe and gives good returns. It is a good choice for senior citizens who want steady income after retirement.