Senior Citizen Savings Scheme: Investing their savings in a safe place after retirement is a priority for every senior citizen. The Government of India has introduced the Senior Citizen Savings Scheme (SCSS) specifically for people aged 60 years and above. This scheme not only ensures investment security but also offers regular and attractive interest, which is generally higher than bank fixed deposits.
Who can invest?
Anyone aged 60 years and above can invest in the Senior Citizen Savings Scheme. Those who have retired through VRS or superannuation can also avail of this scheme, subject to certain conditions. This scheme is especially beneficial for senior citizens looking for a stable income after retirement.
Investment Amount and Interest Rate
The minimum investment allowed in this scheme is ₹1,000, and the maximum is ₹30 lakh. Currently, this scheme offers an interest rate of 8.2% per annum. Interest is credited to the account every three months, and the government can revise the interest rate every quarter. This assures investors of regular income and facilitates financial planning.
Term and Tax Benefits
The Senior Citizen Savings Scheme has a base tenure of five years, which investors can extend by three years. Furthermore, investments in this scheme are eligible for tax exemption under Section 80C. Although interest is taxable, TDS is not deducted if the interest amount is less than ₹50,000. This scheme provides both financial security and tax benefits.
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Account Opening Process
Senior Citizen Savings Scheme accounts can be easily opened at a post office or any recognised bank branch. The scheme’s process is simple and completely secure for senior citizens. Due to the government guarantee, investors’ funds are protected, and they receive regular income.