Senior Citizen Savings Scheme Account (SCSS) is a small savings post office scheme focused on providing income to senior citizens. Senior citizens can deposit in their SCSS account a multiple of Rs 1,000, with the maximum amount not exceeding Rs 30 lakh. The post office provides 8.2 per cent annual interest in this guaranteed return scheme. Deposits up to Rs 1.50 lakh in a financial year made under the scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961.
SCSS: Financial freedom is important for every citizen who wants to become financially independent throughout their lifetime. The earlier you achieve it, the better it is for your mental peace. Retirement planning is also a key milestone for achieving financial freedom. If you start it early in your career, the better outcome you are likely to find in the face of a large lump sum at retirement or a monthly pension. But even if you miss the bus, there are investment schemes solely focused on senior citizens, where a one-time investment gives you income in the form of interest.
At maturity, you get your principal amount back. Post Office Senior Citizens Savings Scheme Account (SCSS) is also one scheme where a one-time investment provides you with interest once in three months.
Know how much quarterly income you can get from it after depositing Rs 5 lakh, Rs 10 lakh, Rs 15 lakh, and Rs 20 lakh.
What is Senior Citizen Savings Scheme Account (SCSS)
The small savings post office scheme is focused on providing income to senior citizens.
They can deposit in their SCSS account a multiple of Rs 1,000, with the maximum amount not exceeding Rs 30 lakh.
The post office provides 8.2 per cent annual interest in this guaranteed return scheme.
Deposits up to Rs 1.50 lakh in a financial year made under the scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961.
An individual above 60 years of age, a retired civilian employee above 55 years of age and below 60 years of age, and a retired defence employee above 50 years of age and below 60 years of age are eligible to open an SCSS account.
Interest shall be payable on a quarterly basis in SCSS and is applicable from the date of deposit to March 31/June 30/September 30/December 31.
The account can also be extended for a further period of 3 years from the date of maturity.
What do you get on Rs 5 lakh, Rs 10 lakh, Rs 15 lakh, and Rs 20 lakh investments?
If you invest Rs 5 lakh in the scheme, you will get quarterly interest of Rs 10,250, or Rs 41,000 yearly, and the maturity amount will be Rs 7,05,000.
On one-time investment of Rs 10 lakh, you get quarterly interest of Rs 20,500, or Rs 82,000 a year, and the maturity amount will be Rs 14,10,000.
If one invests Rs 15 lakh in SCSS, they will get quarterly interest of Rs 30,750, or Rs 1,23,000 a year, and the maturity amount will be Rs 21,15,000.
On an investment of Rs 20 lakh, the quarterly interest will be Rs 41,000, or Rs 1,64,000 a year, and the maturity amount will be Rs 28,20,000.
