Senior Citizen Savings Scheme Benefits: Many people do not have a proper strategy for how to manage their savings after retirement. Many people deposit it in the bank and suffer losses against inflation, while many people, due to lack of any plan, start spending their savings on unnecessary things. Therefore, after retirement, your lifetime earnings should be deposited in a better scheme, where either you are getting high interest or regular income can be earned from that deposited capital. On both these aspects, Senior Citizens Savings Scheme (SCSS), which is the Post Office Savings Scheme, proves to be absolutely correct.
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Highest Safety, High Returns and Tax Savings Benefits
Senior Citizens Savings Scheme has been specially designed keeping senior citizens in mind, which provides the opportunity of regular income along 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 a lump sum in this scheme individually or jointly and earn high returns along with tax benefits. The maturity period of this scheme is 5 years and interest is being given at the rate of 8.2 percent per annum.
Features of SCSS
Maturity: 5 years
Interest rate: 8.2% per annum
Minimum investment: Rs 1000
Maximum investment: Rs 30 lakh
Tax benefit: Available under section 80C
Premature closure facility: Available
Nominee facility: Available
Highest SIP Return: 10 funds with highest SIP return in 10 years, growing money at the rate of 23 to 27% per annum
How many accounts can be opened
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 two separate accounts can also be opened. A maximum of Rs 30 lakh can be deposited in a single account or in a joint account with the wife and a maximum of Rs 60 lakh can be deposited in two separate accounts. You can extend this account for 3 more years after maturity of 5 years.
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SCSS: Interest Calculator
Maximum deposit in single account: Rs 30 lakh
Interest rate: 8.2 percent 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 returns: Rs 42,03,000 lakh
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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. Whereas if you do not withdraw this money then you will get a total interest of Rs 12 lakh in 5 years. After 5 years, your entire deposited capital i.e. the investment made by you will also be returned. After maturity, you can invest in it again.
(Source : India Post, SCSS Calculator)
