Senior Citizen Special Scheme: Most of the elderly people trust such schemes in terms of investment in which their money is safe and they also get better interest. Bank FD is their first choice in this case because they get guaranteed returns in it. Also, banks offer them more interest than common citizens. But in the government’s SCSS scheme, they are being offered such interest which is not available even in the country’s largest bank like SBI. Today on World Senior Citizen’s Day, know about this scheme-
This is the investment limit
SCSS i.e. Senior Citizen Savings Scheme is run in the post office. In this scheme, money has to be deposited for 5 years. This account can be opened with Rs 1000 and a maximum of Rs 30 lakh can be invested in it.
SCSS Vs SBI
SCSS is giving 8.2% interest. While in the country’s largest bank SBI, senior citizens are getting 7.50% interest on FDs up to 3 years, 7.25% on 5-year fixed deposits (FD) and 7.50% on FDs from 5 to 10 years. That is, the maximum interest for senior citizens is 7.50%, while in SCSS it is 8.2%.
At what age can you invest
Any person who is 60 years of age or above can invest. Civil sector government employees taking VRS and those retiring from defense are given relaxation in age limit with certain conditions.
Tax benefits also included
Investing in SCSS gives you the benefit of tax exemption under section 80C of the Income Tax Act. In this way, you can claim tax exemption by investing up to Rs 1.5 lakh.
Extension facility is also available
If you want to continue the benefits of this scheme even after 5 years, then you can extend the account period for three years after the deposit amount matures. It can be extended within 1 year of maturity. The extended account receives interest at the rate applicable on the date of maturity.
