Senior citizens can invest at least Rs 1000 in the savings scheme. Also, you can deposit a maximum of Rs 30 lakh in this scheme in multiples of 1000.
Senior Citizen Saving Scheme (SCSS) is a special savings scheme of the Government of India for senior citizens. This scheme gives guaranteed returns to senior citizens. Besides, investment in it is also completely safe. Not only this, if you invest in Senior Citizen Saving Scheme, you also get the benefit of tax exemption for it. Under this scheme you can open an account in bank or post office.
Who can open an account
Under the Senior Citizen Savings Scheme, a person above 60 years of age can open an account. Additionally, retired civilian employees above 55 years of age and below 60 years can also open an account subject to the condition that the investment is made within 1 month of receipt of retirement benefits. The account can be opened only in individual capacity or jointly with spouse. Keep in mind here, the entire amount deposited in the joint account will belong only to the primary account holder.
How much amount can be invested
Senior citizens can invest at least Rs 1000 in the savings scheme. Also, you can deposit a maximum of Rs 30 lakh in this scheme in multiples of 1000. If any additional amount is deposited in the SCSS account in the Post Office, the excess amount will be immediately returned to the depositor and the interest rate on Post Office Savings Account only will be applicable from the date of excess deposit till the date of refund.
Returns in the scheme
Senior Citizen Saving Scheme offers 8.2% annual interest. In the first instance, interest will be payable from the date of deposit till 31st March/30th September/31st December and thereafter interest will be payable on 1st April, 1st July, 1st October and 1st January. For example, if you invest Rs 10,000, you get interest of Rs 205 on quarterly basis. If the total interest in all SCSS accounts exceeds Rs 50,000/- in a financial year then the interest is taxable and TDS will be deducted at the prescribed rate from the total interest paid. If Form 15G/15H is submitted and the interest earned does not exceed the prescribed limit then no TDS will be deducted.
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