Senior Citizens Saving Scheme: This plan is also applicable to retired military members over the age of 50.
Senior Citizens Saving Scheme: Senior citizens who are going through a tough time during the COVID pandemic, here is a piece of good news for you. Senior Citizens Saving Scheme from the Central government is offering better return for the people who are above 60 and are leading retirement life.
It must be noted that the Senior Citizens Saving Scheme is a government-backed retirement benefit scheme. As per the updates, elderly people can deposit a large amount in this scheme, either individually or collectively, and get regular income. It must be noted that the Senior Citizens Savings Scheme provides an annual return rate of 7.4 per cent.
Eligibility: People above 60 are eligible to invest in Senior Citizens Savings Scheme. Aprt from then, others such as people who have reached the age of 55 but under the age of 60 can also create accounts under this plan if they plan to go for voluntary retirement. This plan is also applicable to retired military members over the age of 50.
Interest rate: The Senior Citizens Savings Scheme offers best interest rate in the market at the moment. It gives interest rate at 7.4% among the many modest savings schemes. Quarterly, the Finance Ministry reviews the interest rate and it will be paid on the first business day of April, July, October, and January, each year.
Minimum Balance: Every senior citizen can maintain a minimum balance of Rs 1,000 to make the account run under this scheme. The maximum can be raised to Rs 15 lakh. Another crucial thing to remember here is that the amount deposited in the account must be in multiples of Rs 1,000. Apart from this account, the banks within the Senior Citizens Savings Scheme allow you to create joint bank accounts with your spouse.
Maturity: The Senior Citizens Savings Scheme is a five-year term plan. After the account matures, it can be extended for additional three years.
Premature closure: However, if you wish to withdraw money or close account before it matures, a penalty of 1.5 per cent of the amount will be deducted. If the account is closed after two years, a 1 per cent penalty is imposed.
