Senior Citizens Savings Scheme: Check Interest Rates, Tax Benefits, Who Can Invest

Senior Citizens Savings Scheme

Senior Citizens Savings Scheme: The Public Provident Fund, Sukanya Samriddhi Yojana, and Senior Citizens Savings Scheme are among the minor savings schemes for which the government recently released interest rates (SCSS). The rates of these small savings plans have remained constant for the quarter from July to September. However, compared to bank fixed deposits, the interest rates for these small pension schemes are significantly greater.

The Senior Citizen Savings Scheme (SCSS) is a unique savings scheme created especially for the senior population. Given that it is intended for Indians over 60, the subscriber must have reached that age on the date the plan was opened. The subscribers, granted that they have retired from their services by opting a VRS, are also able to register a SCSS Account. A 7.4% annual interest rate is offered by the SCSS.

What features does the Senior Citizens Savings Scheme have?

  • A person can start an SCSS account with a deposit as low as Rs 1,000 and as high as Rs 15 lakh. Deposits into the account must be made in multiples of Rs 1,000.
  • This scheme has one of the highest interest prices in the market at 7.4%. From the date of deposit through March 31, June 30, September 30, and December 31, interest is paid on a quarterly basis.
  • If an excessive deposit is made to an SCSS account, the excessive amount will be returned to the depositor right away.
  • This plan’s five-year maturity period may be increased by an additional three years.
  • Investments made under this plan are eligible for the tax breaks provided by section 80C of the 1961 Income Tax Act. If total interest earned across all SCSS accounts surpasses Rs 50,000 in a fiscal year, however, interest is taxed. Individuals are eligible for tax deductions on investments up to Rs 1.5 lakh under Section 80C.
  • No interest will be paid if an SCSS account is closed before one year, and any interest paid will be deducted from the account’s principle in accordance with the rules.
  • The SCSS account will earn interest at the rate of the general savings account in the case of the account holder’s death, starting on the date of death.

Senior Citizens Savings Scheme Eligibility

Who is eligible to create an account with the Senior Citizens Savings Scheme?

  • A person who is an Indian citizen and is older than 60.
  • Retired Civilian Employees who are over 55 but under 60, with the requirement that the investment be made within a month after receiving retirement benefits.
  • Defense retiree Employees who are 50 or older but under 60 can open a SCSS account as long as the investment is made within a month of receiving retirement benefits.
  • HUFs and NRIs cannot invest in the SCSS scheme.

Banks That Provide SCSS Services

Several banks, including the State Bank of India, Punjab National Bank, ICICI Bank, Central Bank of India, Bank of Baroda, Bank of Maharashtra, and others provide Senior Citizens Savings Scheme services in addition to the post office.

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