Senior Citizens Savings Scheme: The Senior Citizens Savings Scheme (SCSS) of the post office which gives guaranteed returns is very good. You can use it for income on a monthly or quarterly basis. However, the investment has to be made only once. As long as the maturity period of this scheme is there, you will earn on a regular basis, while after maturity you will get your entire principal back. You can again make that principal a means of regular income by investing it in this scheme. This scheme is especially for senior citizens, but you can also take advantage of this account in the name of your parents.
Highest Return: Money doubles in 3 years, 5 times in 5 years and 10 times in 10 years, this mutual fund scheme consistently tops the return chart
About SCSS Scheme
Senior Citizens Savings Scheme (SCSS) is a government-backed retirement benefit program. Senior citizens can invest a lump sum in this scheme individually or jointly and get regular income with tax benefits. SCSS is the highest interest paying savings scheme of the post office, which can be started in any nearest post office or any authorized bank with some necessary documents. There is a sovereign guarantee of the government on small savings of the post office, so there is no tension of safety and returns in it.
Features of this scheme
Investment period: 5 years
Interest Rate : 8.2% p.a.
Minimum investment: Rs 1,000
Maximum investment: Rs 30,00,000
Tax benefits: Up to Rs 1.5 lakh on investment under section 80C of the Income Tax Act
Premature Closing Facility : Available
Nomination Facility : Available
Income: How much fund should be deposited to earn 9000 rupees per month from post office, what are the rules of Monthly Income Scheme
How will you get regular income?
Maximum deposit in a single account: Rs 30 lakh
Interest rate: 8.2% 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
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 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.
SIP Top-Up: Keep topping up your SIP with the money from your salary increment, then you will see the magic in 10, 15 or 20 years
What is the eligibility for the scheme
If you are above 60 years of age or retired employees in the age group of 55-60 years who have opted for Voluntary Retirement Scheme (VRS), can open an account.
Retired defence personnel, minimum 60 years of age, can open the account.
HUFs and NRIs are not eligible to invest in SCSS.
High Return: These 5 mutual funds outperformed all in 10 years, all of them made Rs 20000 SIP into Rs 1 crore in 10 years
If you withdraw money before maturity
There is a penalty for closing the SCSS account before the 5-year lock-in period. This penalty depends on how long you have been opening the account.
If the account is closed before one year, no interest is paid on the deposited amount. If interest has been paid, it will be deducted from the principal.
If the account is closed after 1 year but before 2 years, then 1.5 percent of the amount is deducted from the balance in the account at the time of payment.
If the account is closed after 2 years but before 5 years, 1 percent of the principal amount is deducted.
If your SCSS account is an extended account, there will be no penalty if you close the account after one year of extension.
