Best Scheme for Senior Citizens: The government runs many schemes to provide maximum benefit to senior citizens after retirement. One of these schemes is Senior Citizens Savings Scheme. This is a deposit scheme with 0% risk in which the elderly have to deposit the amount only once. The elderly can earn more than Rs 12 lakh through interest from this scheme. Understand how-
The amount is deposited for 5 years
Post Office Senior Citizen Savings Scheme is a deposit scheme. In this, a fixed amount is deposited for 5 years. Senior citizens can invest up to Rs 30,00,000 in this scheme, while the minimum investment limit is Rs 1000. Currently, SCSS is getting interest at the rate of 8.2%.
This is how you can earn more than Rs 12 lakh
As we told you, you can deposit a maximum of Rs 30,00,000 in this scheme. If you invest this amount in this scheme, then in 5 years you will get Rs 12,30,000 as interest at the rate of 8.2%. Every quarter Rs 61,500 will be credited as interest. In this way, after 5 years you will get a total of Rs 42,30,000 as maturity amount.
You will also get tax benefits
This scheme is also very good in terms of saving income tax. This scheme provides tax benefits under Section 80C of the Income Tax Act. Under 80C, you can claim a deduction of Rs 1.5 lakh from the total income.
Who can invest
Any person who is 60 years of age or above can invest. Civil sector government employees taking VRS and people retiring from defense are given relaxation in age limit with some conditions. The scheme matures after 5 years.
Extension can also be done
If you want to continue the benefits of this scheme even after 5 years, then after the deposit amount matures, you can extend the account period for three years. It can be extended within 1 year of maturity. The extended account gets interest at the rate applicable on the date of maturity.
How to invest
To invest in Senior Citizen Savings Scheme (SCSS), you can open an account in any authorized bank or post office. The account can be opened either singly or as a joint account with the wife.
