Senior Citizens Savings Scheme: After retirement, people’s savings are their strength, so most elderly people do not want to take any risk regarding it.
They want to invest this savings in a place where they get high returns and their invested amount is completely safe. This is the reason why most senior citizens invest money in FDs in banks. Many banks also give 50 percent more interest to senior citizens to encourage their FD investment.
If you are also thinking of investing your retirement capital in a safe place, then this time invest in a post office scheme instead of a bank FD. A special scheme is run in the post office for senior citizens, called Senior Citizen Savings Scheme. In this scheme, they are given a good interest, with the help of which senior citizens can increase their savings rapidly.
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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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.
This is how 15 lakhs will become ₹21,15,000
If you want to increase your savings rapidly, then this scheme can prove to be a better option. In this scheme, if you deposit Rs 15 lakh from your savings for 5 years, then according to the current interest rate of 8.2 percent, you will get Rs 6,15,000 in 5 years as interest only. If you calculate the interest on quarterly basis, it will be Rs 30,750. In this way, by adding Rs 5,00,000 and the interest amount of Rs 6,15,000, you will get a total of Rs 21,15,000 as maturity amount.
