THIS savings scheme gives 7.4% interest per annum; Check benefits, eligibility and more

The Senior Citizen Savings Scheme is only for those who have attained the age of 60 or more and subscribers will get a reasonable return and a guaranteed income from the post office or bank.

New Delhi: Senior citizens in India frequently rely on bank fixed deposits (FDs) or recurring deposits (RDs) for a steady income when they retire. The majority of persons over the age of 60 in the country have a low risk appetite and avoid investing in stock markets or mutual funds. They frequently gravitate for low-risk, high-return savings solutions. Apart from other people, bank and post office savings programmes are still particularly popular among them. To guarantee this, the central government has devised a plan aimed primarily at the elders who wish to protect their future.

The Senior Citizen Savings Scheme (SCSS) is a unique savings plan intended exclusively for the elder citizens. It is for Indians above the age of 60, which means that the subscriber must be at least 60 years old at the time the programme is opened. Subscribers will receive a reasonable return and a guaranteed income from the post office or bank.

Features of Senior Citizens Savings Scheme

-A minimum deposit of Rs 1,000 is required to start a SCSS account, with a maximum deposit of Rs 15 lakh allowed. The money should be put in multiples of Rs 1,000 in the account.

-This scheme has a 7.4 percent interest rate, which is one of the highest. Interest is paid quarterly, starting on the day of deposit and ending on March 31, June 30, September 30, and December 31.

-If an excess deposit is made in the SCSS account, the excess amount will be reimbursed to the depositor immediately.

-This scheme has a five-year maturity period, but it can be extended for another three years.

-The benefit of section 80C of the Income Tax Act of 1961 applies to investments made under this plan. However, if total interest in all SCSS accounts reaches Rs 50,000 in a financial year, it is taxable.

-If a SCSS account is closed before one year, no interest will be paid, and any interest paid in the account will be deducted from the principal, as required by the rules.

In the event of the account holder's death, the SCSS account will earn interest at the rate of a general savings account from the date of death.

Senior Citizens Savings Scheme Eligibility

-A person above the age of 60 who is an Indian citizen.

-Retired Civilian Employees between the ages of 55 and 60, with the condition that the investment be made within one month after receiving retirement benefits.

-Defense Retired Employees between the ages of 50 and 60 can register a SCSS account, with the exception that investments must be made within one month after receiving retirement benefits.