Senior Citizens Savings Scheme Account: Many savings schemes have been started for senior citizens in which they can get good returns on investment. Recently the post office has started a new scheme for senior citizens. Under this scheme, senior citizens will get excellent interest on opening a joint account.
New Delhi: After retirement, anyone becomes very conscious about their savings. He does not want to invest his life’s hard-earned money in any investment option where there is a fear of loss.
The reason for this is that generally the investor around the age of 60 is conservative and does not want to take market risk. For this reason, Senior Citizens Savings Scheme (SCSS), included in the Post Office Small Savings Scheme, is a popular option for senior citizens.
Being a post office scheme, there is 100% guarantee of security in it. Now, with the increase in the maximum limit of deposit and the interest earned on it, this scheme has become more attractive than before.
Interest rates, deposit limits and eligibility
The maximum limit of deposit in Senior Citizens Savings Scheme (SCSS) is now Rs 30 lakh. Earlier this limit was Rs 15 lakh. It was announced to increase this limit in the budget this year.
Whereas from April 1, 2023, the interest rate for this government scheme has been increased to 8.02 percent per annum. This interest rate remains intact for the December quarter. At least Rs 1000 can be invested in this government scheme.
The maximum limit from Singh account is Rs 30 lakh. Investing in SCSS can avail tax exemption on investment up to Rs 1.50 lakh under Section 80C of the Income Tax Act.
Senior Citizens Savings Scheme has the facility that if you are husband and wife then you can also open a joint account. Husband and wife can also open two separate accounts.
In such a situation, a maximum of Rs 60 lakh (Rs 30 lakh in one account) can be deposited in two different accounts. You can extend this account for 3 more years after maturity of 5 years.
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) or retired defense personnel whose minimum age is 60 years, you can open this account.
Calculation on 2 different accounts
Maximum deposit: Rs 60 lakh
Interest rate: 8.02 percent per annum
Maturity period: 5 years
Monthly interest: Rs 40,100
Quarterly interest: Rs 1,20,300
Annual interest: Rs 4,81,200
Total interest in 5 years: 24,06,000
Total Return: Rs 84,06,000 lakh (60,00,000 + 24,06,000)
Calculation on single account
Maximum deposit: Rs 30 lakh
Interest rate: 8.02 percent per annum
Maturity period: 5 years
Monthly interest: Rs 20,050
Quarterly interest: Rs 60,150
Annual interest: Rs 2,40,600
Total interest in 5 years: Rs 12,03,000
Total Return: Rs 42,03,000 lakh (30,00,000 + 12,03,000)
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