Senior Citizen Savings Scheme offers 7.6% interest: Who can join? How to invest, income tax benefits and more – Senior Citizen Savings Scheme

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Senior Citizen Savings Scheme

Senior Citizen Savings Scheme (SCSS) is one of the most-preferred investment options among retirees. Here is all you need to know about this government-backed schemeGetty Images

Anyone aged 60 and above can invest in this scheme. Retired individuals aged above 55 years but below 60 years can also opt for this scheme if they invest within a month of receiving retirement benefits.’Getty Images

The minimum investment limit is Rs 1,000 while the maximum investment can go up to Rs 15 lakh.Getty Images

Senior Citizen Savings Scheme: Tenure

It has a five-year tenure, but it can be further extended by three years on maturity.Getty Images

For investments made in the October-December quarter of FY2022-23, the Senior Citizen Savings Scheme offers an interest rate of 7.6 per cent per annum. The interest is payable every quarter and fully taxable. The scheme does not provide any interest on maturity. Further, once the investment is done the interest rate remains the same throughout the tenure.Getty Images

Premature withdrawal rule

A premature withdrawal option with penalties is allowed after completion of one year from the date of opening the account. For premature withdrawal after one year, an amount equal to 1.5 per cent of the deposit is deducted as a penalty. In case of premature withdrawal on or after the second year, an amount equal to 1 per cent of the deposit is deducted.Getty Images

Senior citizens can claim a tax deduction for investments in this scheme under Section 80C of the Income Tax Act, 1961.Getty Images

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