Senior Citizens Savings Scheme Account: Senior Citizens Savings Scheme has the facility that if you are husband and wife then you can also open a joint account. Husband and wife can also open two separate accounts. Let us know about it in detail.
After retirement, anyone becomes very conscious about their savings. He does not want to invest his life’s hard-earned money in any investment option where there is a fear of loss. The reason for this is that generally an investor around the age of 60 is conservative and does not want to take market risks.
For this reason, Senior Citizens Savings Scheme (SCSS), included in the Post Office Small Savings Scheme, is a popular option for senior citizens. Being a post office scheme, there is 100% guarantee of security in it. Now, with the increase in the maximum limit of deposit and the interest earned on it, this scheme has become more attractive than before.
Interest rates, deposit limits and eligibility
Now the maximum limit of deposit in Senior Citizens Savings Scheme (SCSS) is Rs 30 lakh. Earlier this limit was Rs 15 lakh. It was announced to increase this limit in the budget this year. Whereas from April 1, 2023, the interest rate for this government scheme has been increased to 8.02 percent per annum.
This interest rate remains intact for the December quarter. At least Rs 1000 can be invested in this government scheme. The maximum limit from Singh account is Rs 30 lakh. Investing in SCSS can avail tax exemption on investment up to Rs 1.50 lakh under Section 80C of the Income Tax Act.
Senior Citizens Savings Scheme has the facility that if you are husband and wife then you can also open a joint account. Husband and wife can also open two separate accounts. In such a situation, a maximum of Rs 60 lakh (Rs 30 lakh in one account) can be deposited in two different accounts.
You can extend this account for 3 more years after maturity of 5 years. If your age is more than 60 years or retired employees in the age group of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or retired defense personnel whose age is minimum 60 years, you can open this account.
Calculation on 2 different accounts
- Maximum deposit: Rs 60 lakh
- Interest rate: 8.02 percent per annum
- Maturity period: 5 years
- Monthly interest: Rs 40,100
- Quarterly interest: Rs 1,20,300
- Annual interest: Rs 4,81,200
- Total interest in 5 years: 24,06,000
- Total Return: Rs 84,06,000 lakh (60,00,000 + 24,06,000)
Calculation on single account
- Maximum deposit: Rs 30 lakh
- Interest rate: 8.02 percent per annum
- Maturity period: 5 years
- Monthly interest: Rs 20,050
- Quarterly interest: Rs 60,150
- Annual interest: Rs 2,40,600
- Total interest in 5 years: Rs 12,03,000
- Total Return: Rs 42,03,000 lakh (30,00,000 + 12,03,000)
