Arranging a regular income in old age is very important. Especially for retired individuals, the government offers a great opportunity through the Senior Citizens Savings Scheme (SCSS). By investing in this scheme, you can receive a monthly pension of ₹20,000. Couples can also enjoy double benefits by opening separate accounts.
What is the Senior Citizens Savings Scheme (SCSS)?
The Senior Citizens Savings Scheme (SCSS) is a special retirement benefit plan offered by the Government of India. It provides guaranteed returns with an attractive interest rate. The interest is paid every three months, making it a reliable source of income for senior citizens.
Key Features of SCSS
High Interest Rate – SCSS offers one of the highest interest rates among post office savings schemes, currently 8.2% per annum.
Guaranteed Security – Since this is a government-backed scheme, your money remains 100% safe.
Tax Benefits – Investments in SCSS qualify for tax deductions under Section 80C of the Income Tax Act.
How to Invest in SCSS?
Investment Amount – The minimum investment is ₹1,000, while the maximum limit is ₹30 lakh per account.
Account Type – You can open either a single account or a joint account (with a spouse).
Payment Method –
If the investment amount is below ₹1 lakh, it can be deposited in cash.
If the investment amount exceeds ₹1 lakh, the payment must be made via cheque.
Special Benefits for Couples
If both husband and wife invest separately, they can open two SCSS accounts. This allows a couple to invest up to ₹60 lakh in total and get higher returns in old age.
Income Calculation
For a Single Account
- Investment: ₹30 lakh
- Interest Rate: 8.2% per annum
- Quarterly Interest: ₹60,150
- Annual Interest: ₹2,40,600
- Total Interest in 5 Years: ₹12,03,000
- Total Return in 5 Years: ₹42,03,000
For a Couple (Two Accounts)
- Investment: ₹60 lakh
- Interest Rate: 8.2% per annum
- Quarterly Interest: ₹1,20,300
- Annual Interest: ₹4,81,200
- Total Interest in 5 Years: ₹24,06,000
- Total Return in 5 Years: ₹84,06,000
Why Should You Invest in SCSS?
- Regular Income – Interest is paid every three months, helping with monthly expenses.
- Government-backed security – A safe investment option for senior citizens.
- Joint Account Benefits – Couples can invest more and earn double returns.
- Tax Savings – Get income tax benefits under Section 80C.
The Senior Citizens Savings Scheme (SCSS) is a secure and reliable investment option that ensures financial stability in retirement. If you want guaranteed income, investing in SCSS is a wise choice.