Senior citizens Scheme: If you have retired and want regular income in old age, then Senior Citizen Savings Scheme (SCSS) is a great option for you. Under this scheme, you can arrange for regular income by investing your retirement fund safely.
As per the maximum limit of investment in this scheme, you can get interest up to ₹ 60,000 every 3 months. At the same time, if you are a retired couple, you can avail double the benefit by opening separate accounts in your and your partner’s name. Let’s know about it in detail.
Source of regular income after retirement
Senior Citizens Savings Scheme is a retirement benefit scheme of the government. Senior citizens can invest in this scheme. The amount deposited in the SCSS account gets interest determined by the government, which is given every quarter. This interest can be used for regular income.
Also, your entire deposit amount is returned on completion of the scheme period. You can reopen this account after maturity and continue enjoying regular income.
Highest interest-paying small savings scheme
SCSS is the highest interest-paying small savings scheme of the post office. This scheme is offering 8.2% annual interest. Only Sukanya Samriddhi Yojana offers such a high interest rate. Money deposited in the post office is 100% safe. Senior citizens living in India can invest a lump sum amount in this scheme individually or jointly and receive regular income with tax benefits.
Easy and convenient process
A maximum of ₹30 lakh can be invested in a single account. It is mandatory to deposit a minimum of ₹1,000 in this account. If the deposit amount is less than ₹1 lakh, you can pay in cash. However, for amounts above ₹1 lakh, payment has to be made by cheque.
In SCSS, you can open a single account or you can also open a joint account with your wife. Also, if both husband and wife are eligible, they can open two separate accounts. A maximum of ₹30 lakh can be deposited in a single account or joint account. A maximum of ₹60 lakh can be deposited in two separate accounts, which also doubles the interest.
How much interest will be received on SCSS
First of all, let’s talk about the interest and returns of a single account. Suppose, if you deposit ₹30 lakh, you get interest at the rate of 8.2% every year. If you keep this amount safe for 5 years, you will get interest of ₹60,150 every three months. That is, the annual interest will be ₹2,40,600, while in 5 years you will get interest of ₹12,03,000. The total return would be ₹42,03,000 (₹30 lakh principal + ₹12.03 lakh interest).
Considering the interest and returns of the two different accounts, you can invest a total of ₹60 lakh. With an interest rate of 8.2%, you will get a return of ₹1,20,300 in 3 months, while in 5 years you will get a return of ₹24,06,000. The total return would be ₹84,06,000 (₹60 lakh principal + ₹24.06 lakh interest).
SCSS not only gives you the option of regular income but also offers tax benefits. This scheme is specially designed for retired individuals, through which they can create a secure future for themselves.
