The Senior Citizen Savings Scheme (SCSS) provides fixed returns to retired individuals. You can also invest in this scheme without any risk. This government-run scheme offers the highest interest rates among small savings schemes.
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Senior Citizen Savings Scheme: Investors have been facing losses in the stock market for the past few months, leading many to opt for safer investments. We’re going to share the calculations for a scheme that will help you save lakhs of rupees. This government scheme is the Senior Citizen Savings Scheme (SCSS). This scheme is considered one of the best investments for planning a secure and stable income after retirement.
The Senior Citizen Savings Scheme (SCSS) provides fixed returns to retired individuals. Furthermore, you can invest in this scheme without risk. This government-run scheme offers the highest interest rate among small savings schemes, making it an attractive option for retired individuals looking to grow their savings.
How much interest is earned?
The Senior Citizen Savings Scheme offers an annual interest rate of 8.2%. SCSS enables senior citizens to safeguard their retirement funds while also receiving a steady income. Here’s a detailed breakdown of how the scheme works and its potential benefits.
How does this scheme work?
Senior citizens can open an SCSS account individually or jointly with their spouse. Under this scheme, a maximum of ₹30 lakh can be deposited in each account, with a minimum investment of ₹1,000. Deposits up to ₹1 lakh can be made in cash, while payments above ₹1 lakh must be made by check.
How to Earn ₹24 Lakh
Retired couples can maximize their benefits by opening separate SCSS accounts, doubling their investment limit to ₹60 lakh. This will generate ₹1,20,300 in quarterly interest, and an annual interest income of ₹4,81,200. Similarly, upon maturity after five years, they will earn a total of ₹24,06,000. That means, after investing Rs 60 lakh under two accounts, you can get Rs 24 lakh as interest after five years.
Features of this scheme
High returns: The Senior Citizen Savings Scheme offers an annual interest rate of 8.2%, making it the highest-yielding small savings scheme along with the Sukanya Samriddhi Yojana.
Tax benefits: Deposits are eligible for tax benefits under Section 80C of the Income Tax Act, providing additional savings to account holders.
Safety: This government-backed scheme ensures 100% safety of deposits.
How much will you earn on investing up to ₹30 lakh in a single account?
Quarterly interest: ₹60,150
Annual interest: ₹2,40,600
Total interest over five years: ₹12,03,000
Total maturity amount: ₹42,03,000
The Senior Citizens Savings Scheme is an ideal option for those seeking stable income and financial security after retirement. With the option to renew after five years of maturity, it remains a reliable way to secure your financial future.
