The Senior Citizens Savings Scheme (SCSS) is a secure and government-backed investment plan designed for senior citizens. With an interest rate of 8.2% for the current quarter, it offers guaranteed returns, making it an excellent choice for generating a reliable retirement income.
Key Highlights of SCSS
- Government-Backed Security: The scheme is fully backed by the government, ensuring safety for your investments.
- Investment Limit: A maximum investment of ₹30 lakh is allowed.
- Duration: The scheme has a 5-year term, extendable by an additional 3 years.
- Tax Benefits: Contributions are eligible for tax deductions under Section 80C, though the interest earned is taxable. TDS will apply if the annual interest exceeds ₹50,000.
- Income Flexibility: The scheme offers flexible payout options—monthly, quarterly, or annually.
Investment Breakdown and Returns on SCSS
For ₹5 Lakh Investment
- Monthly Return: ₹3,416
- Quarterly Return: ₹10,250
- Annual Return: ₹41,000
- Total Interest in 5 Years: ₹2,05,000
- Maturity Amount: ₹7,05,000
For ₹10 Lakh Investment
- Monthly Return: ₹6,833
- Quarterly Return: ₹20,500
- Annual Return: ₹82,000
- Total Interest in 5 Years: ₹4,10,000
- Maturity Amount: ₹14,10,000
For ₹15 Lakh Investment
- Monthly Return: ₹10,250
- Quarterly Return: ₹30,750
- Annual Return: ₹1,23,000
- Total Interest in 5 Years: ₹6,15,000
- Maturity Amount: ₹21,15,000
What Makes SCSS Stand Out?
The SCSS scheme is a solid choice for senior citizens, offering a combination of guaranteed returns and an attractive interest rate. It is a reliable source of steady income post-retirement, helping seniors maintain financial independence.
Disclaimer: This information is provided for general guidance only. For tailored investment advice, please consult a financial expert.
