Senior citizens savings schemes are considered a better option for retirement. On investing in it, benefits ranging from tax exemption to interest are given. Any citizen of 60 years can invest in SCSS. Come let’s know the complete information about it.
Even within a month of retirement, you can deposit money in SCSS till the age of 55 to 60 years. Under this scheme, interest is given on a quarterly basis. The government can give great news to those who invest in this scheme.
The Central Government may change the interest rates of Senior Citizen Savings Scheme (SCSS) by the end of this month. However, it is being said in some media reports that for this the senior citizen may have to wait a little longer.
If you want to open an account in Senior Citizen Savings Scheme, then you can open this account in Authorized Bank and Post Office. A savings account can be opened under SCSS with as little as Rs 1000. So far the maximum investment limit in SCSS was Rs 15 lakh, which has been increased to Rs 30 lakh in Budget 2023.
Know what experts say
According to Vineet Khandare, CEO and Founder of MyFundBazaar India Private Limited, further revision in SCSS interest rate is unlikely. However, it is expected that the government may increase the interest rate on small savings schemes of shorter duration due to rise in G-Sec yields.
Although the interest rate of SCSS was revised recently, another revision is not expected. According to Nirav Karkera, head of research at Fisdom, policy rates have seen a steep rise in the past few quarters, while interest rates offered on Senior Citizens Savings Scheme (SCSS) are also rising at a slower pace.
How much do you get return
Investment in the scheme comes under the purview of investment tax exemption up to Rs 1.50 lakh under Section 80C of Income Tax and its maturity period is five years. Later the investment of SCSS can be extended for three more years.
In this scheme, a return of Rs 200 is being received every quarter on an investment or deposit of Rs 10,000. That is, during this scheme of five years, you get a total return of Rs 4000. Now if you invest Rs 20,000 in this as per the assumed post-budget rule, you will get a return of Rs 400 every quarter and similarly, for five years your total return will be Rs 8000.