Senior Citizen Savings Scheme: Are you looking for a safe and profitable investment option, Then SCSS may be perfect for you. SCSS means Senior Citizen Savings Scheme, which is run in the post office.
In this scheme, you have to deposit money for 5 years. This account can be opened with just ₹ 1000 and a maximum of ₹ 30 lakh can be invested in it.
Do you know how much interest is available in SCSS? 8.2% interest is being given to SCSS.
Whereas 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 FDs, and 7.50% on FDs of 5 to 10 years. That is, the maximum interest for senior citizens is 7.50%, while in SCSS it is 8.2%.
Benefits of SCSS
High interest rate: On SCSS you get a higher interest rate than normal banks. This helps your investment grow faster.
Tax benefits: Investing in SCSS gives you the benefit of tax exemption under Section 80C of the Income Tax Act. You can claim tax exemption by investing up to Rs 1.5 lakh per year.
Investment limit: You can invest a minimum of Rs 1000 and a maximum of Rs 30 lakh in SCSS.
Investment period: The investment period of SCSS is 5 years. You can extend it for 3 years if you wish.
At what age can you invest
Any person who is 60 years or above can invest. On the other hand, civil sector government employees who are taking VRS and retiring from defense are given age relaxation 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. This way, you can claim tax exemption by investing up to ₹1.5 lakh.
Who can invest
Individuals aged 60 years or above
Government employees taking VRS or retiring from defence (with certain conditions)
How to invest in SCSS
SCSS account can be opened at any post office. You have to submit some essential documents like an Aadhaar card, PAN card, and identity card.
If you want to avail 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. Interest on the extended account is available at the rate applicable on the date of maturity.
SCSS is a safe and profitable investment option, especially suitable for senior citizens. If you are looking for an investment option that offers you tax savings and high interest rates, SCSS can be an excellent option for you.