The government has got many schemes to provide financial security for elderly citizens after retiring, and one of the most important is the Senior Citizen Savings Scheme (SCSS). This is a fully invested, safe, and reliable deposit scheme that allows investment only once. The best thing is that this scheme promises the elderly good interest with 0% risk on their savings.
The residents could deposit their funds in this scheme for 5 years. The minimum investment in this is Rs 1,000 and maximum investment can go up to Rs 30 lakh. Right now, this scheme offers an annual interest of 8.2%, thus catchy. Under this, the elderly receive payment every quarter in the form of interest paid to them, which makes a provision for regular income.
Learn how to make more than Rs 12 lakh
If you’re thinking about investing in the Senior Citizen Savings Scheme (SCSS), it’s worth knowing that there’s an upper limit of Rs 30 lakh per individual for investment. If you invest the entire Rs 30 lakh, this gives a neat 8.2% annual interest. According to this, you will receive ₹ 61,500 in interest in every quarter.
After 5 years, this will yield an interest worth ₹ 12,30,000 on this investment, and at maturity a total sum of ₹ 42,30,000 will be given to you. This way, not only would the principal amount increase, but also the interest that is deposited in your account every quarter would serve as a regular income, which would help you to have financial security post-retirement.
Let Understand Tax Benefits Additional of Tax Benefits
Senior Citizen Savings Scheme (SCSS) not only acts as a safe place for investments, but it also caters to tax savings. This enables you to enjoy the tax benefits under Section 80C of the Income Tax Act by investing in this scheme. It allows you to make your claim for deduction of maximum up to ₹ 1.5 lakh on income. Investing in this scheme proves useful for reducing the taxes and helps you to save more.
Know the Investors
A person must be at least 60 years in order to invest in the Senior Citizen Savings Scheme (SCSS). This scheme is exclusively meant for those elderly who had the aspiration for guaranteed financial future post-retirement.
If such a government employee has retired under Voluntary Retirement Scheme (VRS), or if such person is retiring from defense services, he/she may be at least 50 years of age. Such a person can invest under this special condition. It has a tenure of 5 years and many investors can encash the amount along with accrued interest after completion of the period.