In Senior Citizen Saving Scheme, its interest rate is much better than Fixed Deposit and Savings Account. Know here how you can get its benefit.
Senior citizens mostly like to invest their savings in such a place, where they can get better returns and their money is also safe. Because of this, most of the elders prefer to have FD. Senior Citizen Saving Scheme (SCSS) can be of great use for such people.
The government is especially for those people, whose age is more than 60 years. Apart from this, those who have taken VRS can also take advantage of this scheme. Its rate of interest is much better as compared to fixed deposits and savings accounts. At present, interest is being received on SCSS at the rate of 8.2%. Let us know the special things related to this scheme.
The scheme matures in 5 years
A minimum of Rs 1000 and a maximum of Rs 30 lakh can be deposited in this account. The amount is deposited in multiples of 1000 in the scheme. Interest is payable on the deposit amount on quarterly basis. The deposit amount matures after 5 years from the date of opening of the account. If the depositor wishes, he can extend the term of the account for three years after the maturity of the deposit. But this extension option is available only once.
How much interest on deposits of 5, 10, 15, 20 and 30 lakhs
If you invest Rs 5 lakh in this scheme, then at the rate of 8.2% you will get Rs 2,05,000 as interest. In this way you will get Rs 7,05,000 on maturity. On depositing Rs 10 lakh, you will get Rs 14,10,000 on maturity, on depositing Rs 15 lakh you will get Rs 21,15,000, on depositing Rs 20 lakh you will get Rs 28,20,000 on maturity and on depositing Rs 30 lakh you will get Rs 42,30,000 on maturity. This is such a good interest that you will not get soon on any other scheme.
Benefits of the scheme
- Senior Citizen Savings Scheme is a small savings scheme backed by the Government of India, hence it is considered one of the reliable and safe options.
- This account can be transferred anywhere in India.
- Under Section 80C of the Income Tax Act, you can claim tax exemption of Rs 1.5 lakh per year by investing in this scheme.
- Interest is paid every three months under this scheme. Interest is credited to your account on the first day of every April, July, October and January.
Account opening process
To open this account in post office or public / private banks, you will have to fill a form, as well as submit this form along with two passport size photographs, identity proof and copies of other KYC documents. The advantage of opening an account with a bank is that the deposit interest can be directly credited to the savings bank account of the depositor with the bank branch. Account statements are sent to the depositors through post or email.
