In this post, we will let you know about the details of Senior Citizen Savings Scheme in Post office. The corona comes from the harsh environment of not being able to predict what will happen at any time after it arrives among the population. So, it is important for people to be in a safe environment.
However, people are also forced to think about investing in these difficult times. More particularly, Senior citizens are forced to invest for their livelihoods. In that sense, we are looking at a safe, market risk-free program for senior citizens.
Senior Citizen Savings Scheme
What we are looking at today is the Savings Plan for Senior Citizens (SCSS). It is a safest investment scheme since it is a postal program. Market risk is not a drop. It is a best suitable plan for the Senior citizen as it gives a steady substantial income. It will also help you not to depend on anyone financially in old age.
This savings plan stipulates that the account must be opened within one month of receiving the pension benefits. Generally, a person must be 60 years of age or above to join this savings scheme of the government. Recipients of the same VRS can join over the age of 55. Retired security guards over the age of 50 are also eligible for the internet in this savings plan. However, HUF & NRIs are not eligible to invest in this savings account.
A minimum investment amount in this scheme is Rs.1000. You can invest up to a maximum of 15 lakh rupees. However, it should not be more than the amount received on retirement. This amount will be taken into account as a deposit. Even if the deposit amount is limited, one person can open multiple SCSS accounts. If you deposit more than Rs 15 lakh, you will get the normal interest rate available on the savings account.
The government adjusts the interest rate for this scheme according to the market situation. At present the interest rate is 7.40%. The maturity of this savings plan is 5 years. However, the scheme can be extended for another three years. You can also close the account in advance in this program. But is only allowed after one year. There is a charge for this pre-closure.
Is there a tax deduction?
The scheme also offers tax relief to senior citizens. It can claim tax exemption up to Rs 1.5 lakh under section 80C. In addition, the interest earned on this deposit is fully taxable. If the interest income is more than Rs. 50,000, DTS will also be deducted. To avoid this, you can avail offers by giving 15G or 15H form.
Higher than Bank Interest
The interest rate on this scheme is higher than the interest rate available for fixed deposits in banks. Thus, the scheme seems as an alternative to bank deposits. This includes a quarterly interest rate. It also seems as an income available to the elderly in old age.
How is Rs 20 lakhs possible?
For example, if you invest Rs.10,000 – the interest amount will be Rs.3700. With this maturity amount – Rs. 13,700.
* Rs. 5 lakh deposit – interest amount – Rs. 6,85,000.
* Rs. 15,00,000 deposit – interest amount of Rs. 20,55,000.
So, when you make a maximum investment of 15 lakh rupees, you will get an investment returns of 20,55,000 rupees.