Senior Citizen Saving Scheme (SCSS) is specifically for these individuals whose age is greater than 60 years. It has been ready with the target of offering common earnings to senior residents after retirement.
The rate of interest of Senior Citizen Saving Scheme ie SCSS is 7.6 %. On this scheme lump sum cash is deposited. A minimal of Rs 1000 and a most of Rs 15 lakh might be invested. On this scheme, your cash will double in 9 and a half years i.e. 113 months. The maturity of this account is accomplished in 5 years. Curiosity is paid each quarter on this scheme.
The quantity matures after 5 years
A minimal of Rs 1000 and a most of Rs 15 lakh might be deposited on this account. The quantity is deposited in multiples of 1000 within the scheme. The deposit quantity matures after 5 years from the date of opening of the account. If the depositor needs, he can prolong the time period of the account for 3 years after the maturity of the deposit. However this extension possibility is out there solely as soon as. Curiosity is payable on the deposit quantity on quarterly foundation. Presently the curiosity is 7.40% every year which is efficient from 01 April 2020. This charge will stay until 30 September. The speed is reviewed on March 31, June 30, September 30 and December 31.
Who can reap the benefits of this scheme
- These senior residents whose age is greater than 60 years.
- Individuals who have taken VRS between the age of 55 to 60 years also can reap the benefits of it.
- Retired protection personnel as much as the age of fifty years.
Advantages of this scheme
- Senior Citizen Financial savings Scheme is a small financial savings scheme backed by the Authorities of India, therefore it's thought-about one of many dependable and secure choices.
- The rate of interest of seven.40% every year is significantly better than investments like FDs and financial savings accounts.
- This account might be transferred anyplace in India.
- Beneath Part 80C of the Earnings Tax Act, you'll be able to declare tax exemption of Rs 1.5 lakh per yr by investing on this scheme.
- Curiosity is paid each three months below this scheme. Curiosity is credited to your account on the primary day of each April, July, October and January.
Account opening course of
To open this account in put up workplace or public / personal banks, you'll have to fill a type, in addition to submit this manner together with two passport dimension pictures, id proof and copies of different KYC paperwork. The benefit of opening an account with a financial institution is that the deposit curiosity might be immediately credited to the financial savings checking account of the depositor with the financial institution department. Account statements are despatched to the depositors by put up or electronic mail.