After retirement, despite the reduction in income, expenses continue. In such a situation, correct financial planning is very important. Therefore, it becomes necessary for senior citizens to invest their money in such a place, from where they get good interest as well as the investment is risk-free. Senior Citizen Savings Scheme (SCSS) is a safe and beneficial option for retired persons, which provides financial stability along with regular income. By investing a lump sum in this scheme, one can avail of the benefit of guaranteed income as well as tax exemption.

Senior Citizen Savings Scheme (SCSS) is a government scheme. Therefore, there is no risk of money sinking in it. The special thing about this scheme is the interest received in it. SCSS gives 8.2% annual interest. This interest is more than other traditional investment options like FD. Also, by investing in this scheme, one gets the benefit of tax exemption under Section 80C of the Income Tax Act.

Guaranteed income of ₹2 lakh on investment of ₹5 lakh

According to the SCSS calculator, if a person invests ₹5,00,000 in lump sum, then in 5 years the total amount will become ₹7,05,000. ₹2,05,000 interest will be received on this. Every quarter interest of ₹10,250 will come in the account.

Minimum investment
Investment can be started in Senior Citizen Savings Scheme (SCSS) from ₹1,000. A maximum of ₹30 lakh can be invested in this scheme. Its maturity period is 5 years. After 5 years, the amount invested is returned along with interest.

Who can invest?

Senior citizens of 60 years of age or above.

Retired government employees of 55-60 years, provided the investment is made within one month of retirement.

Retired defense personnel aged 50-60 years.

Tax rules on interest
If the annual interest from all SCSS accounts exceeds ₹50,000, TDS will be deducted. However, TDS will not be deducted if Form 15G/15H is submitted.

Other features of the SCSS account

Joint account: Husband and wife can open the account jointly. The maximum investment limit is ₹30 lakh.

Interest payment: Interest is paid on quarterly basis. It can be withdrawn through auto credit to the savings account or through ECS.

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