Senior Citizen Savings Scheme, or SCSS, is one of the most attractive schemes where those above 60 can put their money in and then sit back and receive big amounts in payments. The two most important features of Senior Citizen Savings Scheme are that it is secure and subscribers one of the highest rates of interest available in the country. In effect, that means Senior Citizen Savings Scheme interest rate should be at the forefront of the mind of every person looking to save and gain.
Notably, this is the 20th year since the Senior Citizen Savings Scheme was introduced by the Centre to provide some extra interest income in the hands of senior citizens in August 2004.
Because it is sponsored by the Government of India, it is one of the safest instruments.
What is Senior Citizen Savings Scheme investment limit
An individual can invest a maximum sum of Rs 30 lakh in the Senior Citizen Savings Scheme.
Senior Citizen Savings Scheme Interest rate revision
SCSS interest is revised every quarter by the Union Finance Ministry. Right now, Senior Citizen Savings Scheme interest rate stands at 8.2%, which is 110 basis points higher than the 7.1% offered by the Public Provident Fund or PPF, the favourite of millions of those who are retiring or have retired or even not anywhere close to retirement.
When is Senior Citizen Savings Scheme Interest paid?
Someone who parks his money in SCSS will get the interest paid to him every quarter.
Interest will be transferred to his account on the first day of every quarter — in April, July, October and January.
Senior Citizen Savings Scheme payout
If one deposits Rs 30 lakh in the SCSS account, one can expect interest payment that will work out to Rs 20,500 a month.
How to open Senior Citizen Savings Scheme account
An SCSS account can be opened in any post office in the country or any designated bank. There is no need to visit the post office to obtain a form to open an account. One can download the SCSS application form from the website of India Post. One can take a print, fill it and submit it along with the necessary documents.
The documents that one needs to submit along with the form are Aadhaar card or voter card to serve as address proof.
One should also submit a copy of the PAN card. A birth certificate or voter card which gives proof of age being above 60 is also necessary since the scheme itself is meant for senior citizens.
Along with all these two passport-size photos of the depositor are also required.
The photocopies of the documents should be self-attested.
Anyone above 60 can invest in this scheme, which is available in post offices around the country.
Moreover, defence sector employees between 50 and 60 years can also put their money here. However, they must have retired from service and they must out the money within a month of receiving retirement benefits.
Senior Citizen Savings Scheme Income Tax benefits
Moreover, SCSS offers tax deduction benefits to the depositor. This benefit is available under section 80C of the Income Tax Act, 1961, and therefore, investment up to Rs.1.5 lakh is tax deductible a year.
However, if the interest amount is more than Rs 50,000 a year, tax will be deducted at source (TDS).
Though one cannot invest in SCSS online in the post office, one can begin an SCSS account online in certain banks that allow this convenience.
What is Senior Citizen Savings Scheme maturity period
Emergencies might crop up in anyone’s life without notice, and more so at an advanced age. The maturity period of SCSS is five years, though one can extend it for eight years to increase capital accumulation or in multiples of three years.
However, if you close the account within one year of opening it, a charge of 1.5% will be deducted from the principal sum. If the account is closed two years after opening it, the penal charge will come down to 1%.
Senior Citizen Savings Scheme interest rate is spectacular! In the Union budget of 2023, the deposit ceiling in SCSS was doubled from Rs 15 lakh to Rs 30 lakh. It led to a surge in investment in the scheme. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
