The government has a special scheme for senior citizens called the Senior Citizen Savings Scheme (SCSS). By investing in this scheme, you can get a secure future along with good returns. Let’s know the details of this scheme.
The Senior Citizen Savings Scheme is a savings plan run by the Government of India. It is specially made to give financial security to senior citizens. The investment in this scheme is completely safe because it is supported by the government. The main aim of this scheme is to provide a regular income to senior citizens after retirement.
Interest Rate and Investment Limit
- Interest Rate: The scheme pays an interest of 8.2% per annum, which is higher compared to many other plans available.
- Minimum Investment: You can invest a minimum of ₹1,000.
- Maximum Investment: You can invest a maximum of ₹30 lakh.
How to Earn ₹13 Lakh in 5 years
- A senior citizen can invest ₹30 lakh and will receive ₹13 lakh in 5 years.
- Yearly Interest: At a rate of 8.2% for ₹30 lakh you will earn ₹2,46,000 every year.
- Quarterly Interest: Every three months, you will receive ₹61,500.
- Total over 5 years: After 5 years, you will earn ₹12,30,000.
Other Important Information
Time Period: The scheme has a period of 5 -years. You can renew the scheme for a further 3-years.
Eligibility: Anyone who is 60 years or older can invest, however, the scheme is also open retirees from the government or defence service if certain criteria are matched.
Tax Benefit: You can claim tax benefit up to ₹1.5 lakh under Section 80C.
Tax on Interest: You will have tax obligation based on your income slab. If you earn greater than ₹50,000 interest in a financial year, tax will be deducted at source (TDS) on your interest até that effective slab rate.