Many people are worried about not having a regular source of income after retirement. In such a situation, the Government of India’s Senior Citizen Savings Scheme (SCSS) has become a stable and secure investment option for the elderly. This scheme not only protects capital but also provides a fixed interest rate every three months, making it easier for retired individuals to meet their medical needs, electricity bills, or insurance premiums.

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Who can invest in SCSS?

Indian citizens aged 60 years and above can invest in this scheme. Those aged 55 to 60 who have taken voluntary retirement (VRS) or superannuation can also join, subject to certain conditions. The minimum investment is ₹1,000, while the maximum limit is ₹30 lakh across all accounts. The account can be opened individually or jointly with a spouse. Individuals can apply for this by visiting a post office or any authorized bank branch.

Interest Rate and Regular Income

Currently, the Senior Citizen Savings Scheme offers an interest rate of 8.2% per annum, which is subject to change after quarterly review by the government. If an investor deposits ₹30 lakh, they will receive an interest of approximately ₹246,000 per year. This interest is directly credited to the investor’s bank account every three months. This ensures an income of approximately ₹61,500 per quarter. This amount becomes a stable source of regular income for the elderly.

What will be received on maturity?

The initial term of this scheme is 5 years. Upon maturity, the investor returns their entire principal amount. Interest payments are already paid quarterly, so only the principal amount is returned upon maturity. This scheme can be extended for 3-year periods. This means investors can continue with it for a total of 8 years if they wish.

Withdrawal facility if needed

Although it is a long-term investment plan, SCSS offers liquidity. If an investor needs money for any reason, they can close the account after one year. However, a small penalty is imposed. Withdrawal before one year is not permitted. Closing the account between one and two years incurs a 1.5% penalty, while closing after two years incurs only a 1% penalty. The remaining amount is returned to the investor.

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Why is SCSS a safe option?

Since the Senior Citizen Savings Scheme is administered by the Government of India, investing in it is considered completely safe. The interest rate is also attractive, and the regular income provides a means of self-reliance for senior citizens. This scheme is not affected by bank or market volatility, making it a reliable option for retired people.