Senior Citizen Savings Scheme: Everyone wants a comfortable life after retirement, free from financial stress. For this, it’s essential to invest your retirement funds wisely to avoid future financial shortages. If you’re looking for an investment option that’s safe and offers good returns, the Post Office Senior Citizen Savings Scheme can be a reliable option. This scheme is specifically designed for senior citizens.
Who can invest in SCSS?
The minimum age for investing in this scheme is 60 years. However, if a person has taken voluntary retirement (VRS) at the age of 50 or above, they can also invest. Retiring defense personnel are also eligible.
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How much can be invested?
The minimum investment amount in the Senior Citizen Savings Scheme is ₹1,000, and the maximum amount is ₹30 lakh. This limit was previously ₹15 lakh, which has now been increased. Deposits of less than ₹1 lakh can be made in cash, while deposits above this amount must be made by check. You can open more than one account if you wish, but the total investment should not exceed ₹30 lakh.
How much interest is earned under the scheme?
SCSS offers an annual interest rate of 8.2 percent, making it more attractive than regular savings schemes. This scheme matures in five years and can be extended for another three years. For example, if you invest ₹10 lakh for five years, you will receive approximately ₹14.28 lakh. Investments up to ₹1.5 lakh are eligible for tax deduction under Section 80C of the Income Tax Act.
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Is it a better option than an FD?
If you want to invest for a shorter period, such as one to three years, an FD may be more suitable for you. Because 1-year FDs offer approximately 6.9 percent interest, and 2- to 3-year FDs offer approximately 7 percent interest. While 5-year FDs offer approximately 7.5 percent interest, SCSS offers a higher interest rate of 8.2 percent. Therefore, if you are looking for a safe investment for the long term, SCSS may be a better option than fixed deposits.