Senior Citizen Savings Scheme: As people grow older and enter retirement, they typically rely on their savings to maintain their lifestyle. To enjoy a comfortable retirement, having sufficient funds is essential. Today, we’ll discuss a program specifically designed for senior citizens: the Senior Citizen Savings Scheme. This government-backed scheme offers a higher interest rate than most other savings options.
What Is Senior Citizen Saving Scheme?
The Senior Citizens Savings Scheme (SCSS) is a deposit scheme in India specifically designed for senior citizens. It is a government-backed scheme, so it is considered very safe. The SCSS is considered a good option for senior citizens who are looking for a safe and reliable investment with a guaranteed interest rate.
Who Can Open A Senior Citizens Saving Scheme Account?
An individual who has attained the age of 60 years or above on the date of opening of an account or an individual who has attained the age of 55 years or more but less than 60 years and has retired under Superannuation, VRS, or Special VRS, can open a SCSS account.
Retired personnel of Defence Services (excluding Civilian Defence employees) can also open an account upon attaining the age of fifty years subject to the fulfilment of other specified conditions.
A depositor can open an account individually or jointly with a spouse. However, the whole amount of deposit in a joint account shall be attributable to the first account holder only.
How To Open A Senior Citizen Savings Scheme Account (SCSS)?
The SCSS account can be opened by a senior citizen at a bank or post office. To open the account, they need to ensure a minimum deposit Rs 1000 in the multiples thereof with a maximum deposit of Rs 30 lakh.
There can be only one deposit in the account in multiple of Rs 1000/- maximum not exceeding Rs 30 lakh. Multiple withdrawals from an account are not permitted.
Senior Citizen Saving Scheme Tax Benefit
Deposits in SCSS qualify for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Senior Citizen Saving Scheme Interest Rate
For the quarter ending September 30, 2024, the rate of interest on the Senior Citizens Savings Scheme is 8.2% per annum, paid quarterly.
Interest is payable from the date of deposit to 31st March/ 30th June/30th September/31st December on 1st working day of April/July/October/January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/July/October/January.
Senior Citizen Saving Scheme: Tenure
The account can be closed after the expiry of 5 years from the date of opening of the account. The depositor may extend the account for a further period of 3 years.
Premature closure is permissible subject to certain conditions.
Senior Citizen Savings Scheme: Know the Returns
Currently, the scheme offers an annual interest rate of 8.2 percent for those who choose the SCSS. Therefore, if someone invests approximately Rs 30 lakh, they will earn an annual interest of Rs 2.46 lakh, equating to about Rs 20,000 per month.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Readers are advised to check with certified experts before making any investment decisions.
