SCSS: This senior citizen scheme can help you get Rs 60,000 quarterly interest; but what should be your investment amount?
Senior Citizens Savings Scheme Account (SCSS): The minimum one-time investment in the scheme is Rs 1,000, and the maximum is Rs 30 lakh. SCSS provides an annual interest rate of 8.2 per cent.
Senior Citizens Savings Scheme Account: Like everyone, senior citizens too need money to run their daily expenses. Either they need to bear these expenses themselves or they can depend on others. But in terms of financial freedom, it is advised to generate income on your own. Such income can be active or passive. But it should be regular, so that anyone depending on it doesn't have to fall back on anyone. Senior citizens too need to have financial freedom in their post-retirement age. As a result, they can invest in a number of instruments, which provide them a regular income. These investment options can be marked-linked or non-market-linked. As far as non-market-linked investment options, which provide guaranteed returns, are concerned, the post office runs the Senior Citizens Savings Scheme Account (SCSS) scheme, where senior citizens can make a one-time investment and get quarterly interest for 5 years.
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Senior Citizens Savings Scheme Account (SCSS) scheme
In this write-up, know about that scheme and what senior citizens can do to get Rs 60,000 in quarterly income.
What is Senior Citizens Savings Scheme Account (SCSS) scheme?
SCSS is a small savings scheme, providing return on one-time investment to senior citizens.
Who can apply for Senior Citizens Savings Scheme Account scheme?
Any individual above the age of 60; a retired civilian employee above 55 years of age and below 60 years of age; and a retired defence employee above 50 years of age and below 60 years of age are eligible to apply in the small savings scheme.
Minimum and maximum investment in Senior Citizens Savings Scheme Account scheme
The minimum one-time investment in the scheme is Rs 1,000, and the maximum is Rs 30 lakh.
Senior Citizens Savings Scheme Account scheme interest rate
SCSS provides an annual interest rate of 8.2 per cent. The payment is payable from the date of deposit to March 31/September 30/December 31 in the first instance, and thereafter, it is payable on April 1, July 1, October 1, and January 1. It means a senior citizen gets 4 equal installments in this scheme.
Can Senior Citizens Savings Scheme Account be extended?
The SCSS account has a lock-in period of 5 years. But, on the completion of the lock-in period, the account can be extended for a further period of 3 years. After completing the term, one gets back their principal amount.
How to get Rs 60,000 quarterly in Senior Citizens Savings Scheme Account
Since SCSS provides an 8.2 per cent interest rate, to get Rs 60,000 quarterly interest, one needs to invest Rs 29,26,900.
If one invests Rs 30,000,00 in the scheme, their quarterly income will be Rs 61,500.