Retirement Fund: Many people do not have a precise strategy on how to manage their savings after retirement. Many people deposit it in the bank and suffer losses against inflation.
Senior Citizen Savings Scheme Benefits: Many people do not have a precise strategy on how to manage their savings after retirement. Many people deposit it in the bank and suffer losses against inflation, while many people do not have any plan and their savings start getting spent on unnecessary things. Therefore, after retirement, one should deposit his lifelong earnings in a better scheme, where either high interest is being received or regular income can be made from that savings. Senior Citizens Savings Scheme (SCSS), which is a Post Office Savings Scheme, proves to be absolutely perfect on both these aspects.
Highest Safety, High Returns and Tax Savings Benefits
Senior Citizens Savings Scheme is specially designed keeping senior citizens in mind, which provides the opportunity of regular income with highest safety, high returns and tax savings benefits. This scheme can also be used for regular income after retirement. Senior citizens living in India can invest lump sum in this scheme individually or jointly and get high returns with tax benefits. The maturity period of this scheme is 5 years and it is getting interest at the rate of 8.2 percent per annum.
Features of SCSS
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Maturity | 5 years |
interest rate | 8.2% p.a. |
Minimum investment | Rs 1000 |
Maximum Investment | Rs 30 lakh |
Tax Benefits | Available under section 80C |
Premature closure available | Available |
Nominee facility | Available |
How many accounts can I open
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 2 separate accounts can also be opened. A maximum of Rs 30 lakh can be deposited in a single account or a joint account with wife and a maximum of Rs 60 lakh can be deposited in 2 separate accounts. You can extend this account for another 3 years after the maturity of 5 years.
SCSS : Interest Calculator
Maximum deposit in a single account: Rs 30 lakh
Interest rate: 8.2 per cent per annum
Maturity period: 5 years
Annual interest: Rs 2,40,600
Quarterly interest: Rs 60,150
Monthly interest: Rs 20,050
Total interest in 5 years: Rs 12,03,000
Total return: Rs 42,03,000 lakh
Regular income or lump sum interest
If you want to earn regular income through Senior Citizens Savings Scheme, then you will earn Rs 60150 every 3 months or Rs 20050 monthly. On the other hand, if you do not withdraw this money, then you will get a total interest of Rs 12 lakh in 5 years. After 5 years, you will get back your entire deposit i.e. the investment made by you. After maturity, you can invest in it once again with a fresh start.
SCSS : Interest Calculator (2 different accounts)
Maximum deposit in 2 different accounts: Rs 60 lakh
Interest rate: 8.2% p.a.
Maturity period: 5 years
Annual interest: Rs 2,81,200
Quarterly interest: Rs 1,20,300
Monthly interest: Rs 40,100
Total interest in 5 years: Rs 24,06,000
Total return: Rs 84,06,000 lakh
If both husband and wife in the same house invest in it through different accounts, then Rs 30 lakh and Rs 30 lakh i.e. Rs 60 lakh can be invested from 2 different accounts. Here your interest will also double i.e. Rs 24 lakh. If you want to earn monthly income, then Rs 40,100 will come in your account every month. After 5 years, you will get back your entire deposit i.e. the investment made by you. After maturity, you can invest in it once again from the beginning.
