SCSS Monthly Income: The Senior Citizens Savings Scheme provides guaranteed returns and the husband and wife together can arrange a monthly income of Rs 40,000.
SCSS for Regular Monthly Income: The Post Office’s Senior Citizens Savings Scheme (SCSS) is an excellent option for safe investment for senior citizens, through which guaranteed returns can be obtained. This scheme gives interest at the rate of 8.2% per annum, which is deposited in your account every quarter. If you work a little wisely, then you can also arrange for regular income every month through this scheme. Let us know how the SCSS scheme works and how much amount can be obtained from it every month.
What is special in the SCSS scheme?
Senior Citizens Savings Scheme (SCSS) is a government savings scheme, which provides safe and fixed returns to senior citizens. Under this scheme, apart from the post office, accounts can also be opened in authorized banks. The investment made in this scheme is guaranteed by the government, so there is no risk in it.
Features of SCSS Account
Investment period: 5 years (option to extend for 3 years)
Interest rate: 8.2% per annum (interest is paid every 3 months)
Minimum investment amount: Rs 1000
Maximum investment: Rs 30 lakh
Tax benefits: Tax exemption on investment up to Rs 1.5 lakh under section 80CA nomination facility is also available.
Who can open an account in SCSS?
All senior citizens aged 60 years or above can open their account in SCSS. Apart from these, those government employees aged 55 to 60 years who have retired under the Voluntary Retirement Scheme (VRS) can also open an account in this scheme. Apart from these, retired defence employees aged 50 years or above can also open an account in SCSS, provided they invest that amount in this scheme within 1 month of getting the retirement benefit. However, HUF and NRI are not allowed to open an account under this scheme.
How many accounts can be opened in the SCSS scheme?
In the SCSS scheme, you can deposit a maximum of Rs 30 lakh in a single account. A maximum of Rs 30 lakh can also be deposited in a joint account of husband and wife. But if husband and wife open separate accounts, then both can invest a total of up to Rs 60 lakh. This scheme is for 5 years, but it can be extended for another 3 years.
How much can be the income every month?
On investing in SCSS, interest is paid every quarter (once in three months). If you want to arrange monthly income through this, then you can manage the withdrawal of interest according to your needs.
Calculation of income on a maximum investment of Rs 30 lakh:
Amount invested-Rs 30 lakh
Annual interest rate- 8.2%
Quarterly payment of interest – Rs 60,150
Monthly Income – Rs 20,050
According to this, on investing Rs 30 lakh, you will get a total of Rs 12.03 lakh as interest in 5 years. If both husband and wife open SCSS accounts, they can separately deposit Rs 30 lakh each in this scheme, which can increase their monthly income to Rs 40,100.
Can I close my SCSS account prematurely?
If you need to, you can close your SCSS account before maturity, but certain conditions apply:
Use SCSS with the right strategy.
SCSS gives quarterly interest, which can be withdrawn every month and used as regular income. You can double your monthly income by opening separate accounts in the name of both husband and wife. Invest the principal amount received after maturity again in SCSS, so that your regular income remains. By combining other savings schemes like the Public Provident Fund (PPF) or Fixed Deposit (FD) with SCSS, better returns can be achieved in the long term. Overall, the Senior Citizens Savings Scheme (SCSS) is an excellent option for those who want regular income after retirement. The scheme’s annual interest rate of 8.2% makes it one of the most attractive savings schemes.
