The Senior Citizens Savings Scheme (SCSS) is a safe and reliable option for senior citizens. This government-backed scheme offers guaranteed returns and is ideal for building a retirement fund. With an attractive interest rate of 8.2% for the current quarter, it ensures regular income for senior citizens.
This scheme is not only safe but also provides guaranteed returns, making it an excellent financial tool for senior citizens to ensure stability. The 8.2% interest rate, along with the option for monthly income, further enhances its appeal.
Key Features of the SCSS Scheme
Guaranteed Returns: The scheme is backed by the government, ensuring safety and reliability.
Investment Limit: You can invest up to ₹30 lakh in this scheme, with a tenure of 5 years (extendable by 3 years).
Tax Benefits: The investment is tax-exempt under Section 80C. However, the interest income is taxable, and TDS will apply if the annual return exceeds ₹50,000.
Regular Income: This scheme is ideal for generating monthly, quarterly, or annual returns.
Investment and Earning Analysis on SCSS
On an investment of Rs. 5 lakh
- Monthly Earning: Rs. 3,416
- Quarterly Earning: Rs. 10,250
- Annual Earning: Rs. 41,000
- Interest-Earning in 5 years: Rs. 2,05,000
- Maturity Amount: Rs. 7,05,000
On an investment of Rs. 10 lakh
- Monthly Earning: Rs. 6,833
- Quarterly Earning: Rs. 20,500
- Annual Earning: Rs. 82,000
- Interest-Earning in 5 years: Rs. 4,10,000
- Maturity Amount: Rs. 14,10,000
On an investment of Rs. 15 lakh
- Monthly Earning: Rs. 10,250
- Quarterly Earning: Rs. 30,750
- Annual Earning: Rs. 1,23,000
- Interest Income in 5 years: Rs. 6,15,000
- Maturity Amount: Rs. 21,15,000
Why is the SCSS scheme special?
With a government guarantee and high interest rates, the SCSS scheme is a safe and beneficial option for receiving regular income after retirement. This scheme not only provides financial security but also helps senior citizens become self-reliant in their plans.
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