The government runs various investment schemes in the country, keeping in mind the needs of people from different income groups. One of these important schemes is the Senior Citizen Savings Scheme, which has been specifically designed to provide financial stability after retirement. This scheme is for senior citizens who want a regular income while keeping their savings safe.
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Why is this scheme important in times of inflation?
In today’s times, due to rising inflation and the volatile stock market, finding a safe investment option is not easy for senior citizens. In such an environment, the Senior Citizen Savings Scheme emerges as a reliable option. It is not directly affected by market fluctuations, and investors receive returns at a fixed interest rate.
Complete information on the interest rate and investment period
The Senior Citizen Savings Scheme currently offers an interest rate of 8.2 percent, which is considered quite attractive compared to other safe schemes. The maturity period of this scheme is fixed at five years. If needed, investors can extend it for an additional three years, providing the benefit of stable income for a longer period
Investment limit and account opening facility
Investment in this scheme can be started with just one thousand rupees. The maximum investment limit is set at thirty lakh rupees. Senior citizens can invest in this scheme through both single and joint accounts, which also brings other family members under the umbrella of security.
Tax exemption and other benefits
A major feature of the Senior Citizen Savings Scheme is that it also provides the benefit of income tax exemption. Moreover, being government-backed, this scheme is considered completely safe. Regular interest payments and capital security make it an ideal option for elderly investors.
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What to keep in mind before investing
Although this scheme is quite popular and safe, it is important to have complete information about its terms, interest rate, and rules before investing. Investing with the right information can prevent any kind of trouble in the future.