Senior Citizens Savings Scheme: After retirement, most elderly people prefer to invest their savings in a place where they get good interest and their hard-earned money is also completely safe.
This is the reason why most senior citizens invest their money in fixed deposits. To motivate them to invest, banks also offer 0.50 percent more interest to senior citizens.
But apart from FD, senior citizens can also think of investing in Senior Citizen Savings Scheme. In this scheme, they get very good interest which may not be available even on FD in many places. By investing in this scheme for 5 years, senior citizens can earn more than Rs 6 lakh in interest.
8.2% interest and tax exemption too
SCSS is currently giving an interest rate of 8.2 percent. Senior citizens can invest up to Rs 30,00,000 in this scheme, while the minimum investment limit is Rs 1000. In this scheme, interest is paid on the deposit amount on a quarterly basis. The scheme matures after 5 years. If you want to continue 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. The extended account gets interest at the rate applicable on the date of maturity. SCSS offers the benefit of tax exemption under section 80C.
You will earn more than 12 lakh rupees from this interest
If you want to increase your savings rapidly, then this scheme can prove to be a better option. If you deposit Rs 30 lakh from your savings in this scheme, then you can earn Rs 12,30,000 from interest at the rate of 8.2%. In this case, you will get Rs 61,500 as interest every quarter and after 5 years, the amount of Rs 30 lakh will become Rs 42,30,000 after maturity.
If you deposit 15 lakh rupees for 5 years, then according to the current interest rate of 8.2 percent, you will get ₹ 6,15,000 in 5 years as interest only. If you calculate the interest on quarterly basis, it will be ₹ 30,750. In this way, by adding 15,00,000 and the interest amount of 6,15,000, you will get a total of 21,15,000 rupees as maturity amount.
The amount is deposited for 5 years
Senior Citizen Savings Scheme is a deposit scheme. In this, money is deposited for 5 years. Any person whose age is 60 years or more can invest. On the other hand, civil sector government employees taking VRS and people retiring from defense are given relaxation in age limit with some conditions.
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