Senior Citizen Savings Scheme : If you are planning for a safe and stable income after retirement, then Senior Citizen Savings Scheme (SCSS) is a great option for you. This government-backed scheme gives fixed returns and is absolutely risk-free. In this, you get the highest interest compared to small savings schemes.
What is SCSS?
Senior Citizen Savings Scheme (SCSS) is a government scheme that gives retired people the option of secure investment with fixed interest. Nowadays when the stock market is witnessing a decline, people are moving towards safe investments. In such a situation, SCSS is a perfect choice.
How much interest will you get?
You get 8.2% annual interest in SCSS. This interest is paid on quarterly basis, which secures your retirement funds as well as gives you regular income.
How does SCSS work?
Senior citizens can open their SCSS account individually or jointly with their spouse.
In this scheme, a minimum of Rs 1,000 and a maximum of Rs 30 lakh can be invested in a single account.
Up to Rs 1 lakh can be deposited in cash, but more than that amount has to be deposited by cheque.
Senior citizens can open their SCSS account individually or jointly with their spouse.
How will one get interest of Rs 24 lakh?
In this scheme, a minimum of Rs 1,000 and a maximum of Rs 30 lakh can be invested in a single account.
Up to Rs 1 lakh can be deposited in cash, but more than that amount has to be deposited by cheque.
If a retired couple opens separate SCSS accounts, their total investment limit increases to Rs 60 lakh. On this investment:
Quarterly interest: Rs 1,20,300
Annual interest: Rs 4,81,200
Total interest after 5 years: Rs 24,06,000
This means that if you invest Rs 60 lakh in two accounts together, then after 5 years you will get interest of approximately Rs 24 lakh.
Specialty of SCSS:
High Returns: With 8.2% annual interest rate, it gives returns equal to small savings schemes like Sukanya Samriddhi Yojana.
Tax Benefits: Investing in this scheme provides tax benefits under Section 80C of Income Tax Act.
100% Safety: Being a government-backed scheme, it is absolutely safe.
What will you get if you invest Rs 30 lakh in one account?
Quarterly Interest: Rs 60,150
Annual Interest: Rs 2,40,600
Total Interest for 5 years: Rs 12,03,000
Total Maturity Amount: Rs 42,03,000
If you want a stable income and financial security after retirement, then Senior Citizen Savings Scheme is a perfect choice. You can also renew this scheme after its maturity period of 5 years, so that your financial future will always be secure.
