Senior Citizens Savings Scheme Account: The maximum limit of lump sum deposit in Senior Citizens Savings Scheme is Rs 30 lakh. This scheme is giving interest at the rate of 8.2 percent per annum. At present this much interest is available only in Sukanya Samriddhi Yojana of the post office.
Senior Citizens Savings Scheme Account (SCSS): After retirement, one’s savings become very special for anyone. Therefore, any retired person would like to invest his life’s hard-earned money in such an investment option, where along with 100 percent security, he also gets better returns. If you are also looking for a similar option for investment, then the Post Office’s Small Savings Scheme, Senior Citizens Savings Scheme (SCSS) can be a better option. There is a sovereign guarantee of the government on small savings of the post office, hence there is no worry about security and returns. Through this scheme, you can invest your funds and create a source of regular income.
What is this scheme
Senior Citizens Savings Scheme (SCSS) is a government-backed retirement benefit program. Senior citizens can invest a lump sum in this scheme individually or jointly and earn regular income along with tax benefits. Senior Citizens Savings Scheme is the highest interest paying savings scheme of the post office. Senior citizens can open an account for this in a nearby post office or an authorized bank with some important documents.
Specialty of this scheme
- Investment period: 5 years
- Interest rate: 8.2% per annum
- Minimum investment: Rs 1000
- Maximum investment: Rs 30,00,000
- Tax benefit: On investment up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
- Premature closing facility: Present
- Nomination facility: Available
The maximum limit of lump sum deposit in the Senior Citizens Savings Scheme is Rs 30 lakh, which was only Rs 15 lakh before April 1, 2023. This scheme is giving interest at the rate of 8.2 percent per annum. At present this much interest is available only in Sukanya Samriddhi Yojana of the post office. In this, the interest amount is paid on quarterly basis.
How many accounts can be opened
In Senior Citizens Savings Scheme, you can open a single account or a joint account with your wife. Apart from this, if both husband and wife are eligible for this, then two separate accounts can also be opened. A maximum of Rs 30 lakh can be deposited in a single account or in a joint account with the wife and a maximum of Rs 60 lakh can be deposited in two separate accounts. You can extend this account for 3 more years after maturity of 5 years.
How much interest will be earned on single account
- Maximum deposit: Rs 30 lakh
- Interest rate: 8.2 per cent per annum
- Maturity period: 5 years
- Monthly interest: Rs 20,050
- Quarterly interest: Rs 60,150
Annual interest: Rs 2,40,600 - Total interest in 5 years: Rs 12,03,000
- Total return: Rs 42,03,000 lakh Rs (30,00,000 + 12,03,000)
How much interest on 2 different accounts
- Maximum deposit: Rs 60 lakh
- Interest rate: 8.2 per cent per annum
- Maturity period: 5 years
- Monthly interest: Rs 40,100
- Quarterly interest: Rs 1,20,300
- Annual interest: Rs 4,81,200
- Total interest in 5 years: Rs 24,06,000
- Total return: 84, Rs 06,000 lakh (60,00,000 + 24,06,000)
Eligibility for the scheme
- If you are over 60 years of age
- Retired employees in the age group of 55-60 years who have opted for Voluntary Retirement Scheme (VRS)
- Retired defense personnel, who are minimum 60 years of age
- HUF and NRI are not eligible to invest in SCSS
What is the penalty on pre-mature withdrawal?
- There is a penalty for closing SCSS account before the lock-in of 5 years. This penalty depends on how much time has passed since you opened the account.
- If the account is closed before one year, no interest is paid on the deposited amount . If interest has been paid, it will be deducted from the principal amount.
- If the account is closed after 1 year but before 2 years, then 1.5% of the amount deposited in the account is deducted at the time of payment.
- If the account is closed after 2 years but before 5 years, 1 percent is deducted from the principal amount.
- If your SCSS account is an extended account, there will be no penalty for closing the account after one year of extension.
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