Senior Citizen Savings Scheme: After a certain age, every person wants to retire from the job. After retirement, many changes take place in a person’s life. Most people’s monthly income stops. Therefore, they become completely dependent on their savings.
It is very important to have money to live a good life after retirement. In such a situation, the ‘Senior Citizen Savings Scheme’ created for senior citizens is a very good option. This government-supported scheme gives higher interest rates than other savings options.
What is Senior Citizen Savings Scheme?
Senior Citizen Savings Scheme (SCSS) is a deposit scheme. It is specially designed for senior citizens. Due to being government-supported, this scheme is considered very safe. This scheme is a perfect option for such senior citizens who are looking for a safe and reliable investment scheme with good interest rates.
Who can open a Senior Citizen Savings Scheme account?
To open an account in this scheme, the age of the person must be 60 years. Apart from this, persons above 55 years and below 60 years who have retired under Superannuation, VRS or Special VRS can also open an account.
People retiring from defense services can also open an account in the scheme after the age of 50 by fulfilling certain conditions. However, this is not available for civil defense employees. Apart from this, a person can also open a joint account with his partner. However, the entire amount deposited in the joint account will be of the first account holder only.
How to open a Senior Citizen Saving Scheme account?
Senior Citizen Saving Scheme account can be opened in a bank or post office by any senior citizen. To open an account, a person has to deposit a minimum of Rs 1000 or its multiples up to a maximum of Rs 30 lakh.
Money can be deposited in this account only once. This amount cannot be less than Rs 1000 and more than Rs 30 lakh. Multiple withdrawals are also not allowed from this account.
Senior Citizen Savings Scheme Tax Benefits
The deposit amount in the Senior Citizen Savings Scheme is eligible for tax deduction up to Rs 1.5 lakh under Section 80C of the Income Tax Act. This means that there will be no tax on deposits up to Rs 1.5 lakh.
Senior Citizen Savings Scheme Interest Rate
The interest rate on Senior Citizen Savings Scheme for the second quarter of the financial year 2024 (1 July to 30 September) is 8.2 percent. It is paid quarterly. It is given on the last date of the current quarter or on the first working day of the new quarter.
Duration of Senior Citizen Savings Scheme
The account can be closed after completion of 5 years from the date of opening the account in Senior Citizen Savings Scheme. Apart from this, the person also has the option to extend the account for another three years. However, the account can also be closed prematurely by following certain conditions.
Return on Senior Citizen Saving Scheme
Currently, the Senior Citizen Saving Scheme is offering an annual interest rate of 8.2 per cent. So, if a person invests around Rs 30 lakh, he will get an annual interest of Rs 2.46 lakh. This will be equivalent to Rs 20,000 every month.
