The Senior Citizen Savings Scheme is a wonderful scheme offered by the Central Government. It offers guaranteed returns based on your investment. The scheme has a tenure of five years, and upon maturity, you can receive profits in lakhs. Currently, the interest rates are high in small savings schemes. The government of Prime Minister Narendra Modi has launched many schemes in the last ten years, with the goal of benefiting different communities.
One of these schemes is the Senior Citizens Savings Scheme, which is particularly great for senior citizens. Eligibility to join this scheme is for those above 60 years of age, or above 55 years of voluntary retirement, or above 50 years of military service. The scheme is backed by the central government, so guaranteed returns can be received without any risk involved. It provides a fixed income.
SCSS Benefits 2024
- The maximum deposit limit for the Senior Citizen Savings Scheme (SCSS) is Rs. 30 lakhs, which was previously Rs. 15 lakhs. The central government increased the limit to 30 lakhs during the 2023 budget. Additionally, in the event of the account holder’s death, their spouse, joint holder, or nominee is eligible to continue the account.
- This investment scheme allows you to start with a deposit of as little as Rs. 1000 and invest any amount up to a maximum of Rs. 30 lakhs. The scheme lasts for five years but can be extended for an additional three years if needed.
- The interest rates for small savings schemes are revised by the Center once every quarter. Currently, the interest rate stands at 8.20%. This scheme, along with Sukanya Samriddhi Yojana, earns the highest interest among all the schemes. The interest is paid once every three months.
- The scheme is available at any recognized bank and can also be availed at post offices.
- Tax exemption benefits are available under Section 80C of the Income Tax Act 1961. You can claim a deduction of up to Rs. 1.50 lakh in a financial year. If you earn more than Rs. 50,000 in interest in a financial year, TDS will be charged.
- Although there is an early withdrawal option, withdrawing the deposit before one year will result in a 1% cut in interest rates.
SCSS Interest Rates 2024
In this investment scheme, if you invest one lakh rupees at 8.20% interest for five years, you will receive a total of Rs. 1,41,000 at maturity. The interest earned on this amount will be Rs. 41000.
Similarly if you deposit five lakhs rupees for five years, you will receive Rs. 7,05,000 at maturity. If you extend the investment for another three years, you can earn even more returns. The maximum limit for this scheme is to deposit 30,00,000 rupees, which will result in a maturity amount of Rs. 42,30,000.