New Delhi: People nowadays are more interested in investing their money rather than keeping it in the savings account of the banks. While the case is different for those who are still earning, for senior citizens, a safe investment is of paramount importance.
While the government has quite a handful of schemes for them, the Senior Citizens’ Savings Scheme stands out for its many benefits. The scheme is backed by the government and hence is safe to invest, since the senior citizens may not have to appetite to take risks. In this article, we will take a look at the many facets of this scheme.
What is the rate of interest of the Senior Citizens’ Savings Scheme?
The Senior Citizens’ Savings Scheme or SCSS is a savings scheme sponsored by the government for those above the age of 60. The Indian government introduced it in 2004 to give senior citizens a steady and secure source of income for their post-retirement phase. According to reports, the current rate of interest of the SCSS is 8.2 per cent per annum.
Can a person invest 30 lakh in the scheme?
Those who are looking to open an account in SCSS can make a minimum deposit of Rs. 1,000. At the same time, the maximum deposit that one can make is Rs. 30 Lakh. So yes, if anybody is looking to invest Rs 30 lakh, he or she can do so.
Who is eligible to open an account?
Any person who has attained the age of 60 years or above can open an account under SCSS. Also, a person who is 55 years old or older but less than 60 years old and has retired under Superannuation, VRS or Special VRS, can open an account. However, the investment should be made within 1 month of receipt of retirement benefits.
What are the benefits of SCSS?
- A person can open an account at any post office or authorized bank in India.
- The principal invested amount in this scheme is eligible for deduction up to a limit of Rs 1.5 lakhs in a year under Section 80C of the Income Tax Act. Also, TDS is applicable if the amount is more than Rs 50,000 for a fiscal.
- The account can be closed after the expiry of 5 years from the date of opening of the account and the investor may extend the account for a further period of 3 years.
- Since the scheme is backed by the government, the return is assured. Moreover, unlike market-linked investments which can fluctuate, SCSS is safe and offers assured returns to individuals.
How to open a SCSS account?
One can visit the nearest bank branch or Post office branch, and fill up Form A. After that, they have to submit the original and photocopies of all the necessary documents. If anyone is looking to open an account online, the person can visit the online portal of the respective bank and see if the option is available there.
