Senior citizens get 8.2% interest rate under this fixed income scheme; check age limit, tax benefits and other key details
SCSS: To take benefit of this scheme, one should be 60 years old or more than that. At the same time, civil sector government employees taking VRS and people retiring from defense are given age relaxation with certain conditions.
Every senior citizen wants a reliable savings scheme to become financially independent. One of such schemes for senior citizens is the senior citizen savings scheme (SCSS). This is a government-backed scheme provided by the post office which gives guaranteed returns on the investment and the investor gets regular income too in their post-retirement years.
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SCSS: Key features
Let's know the key features of the Post Office Senior Citizen Savings Scheme.
Maximum investment limit under SCSS
The maximum limit to invest under this scheme is Rs 30 lakh.
SCSS: Investment period
Run by post office, one has to deposit money for five years under this scheme.
SCSS: Age limit
To take benefit of this scheme, one should be 60 years old or more than that. At the same time, civil sector government employees taking VRS and people retiring from defense are given age relaxation with certain conditions.
Senior Citizen Savings Scheme: Interest rate
The interest rate on SCSS is 8.2 per cent annually.
What are the tax benefits of SCSS?
The investor can take tax benefits under Section 80C.
Can I extend the time beyond 5 years?
If you want to continue the benefits of this scheme even after five years, then after the maturity of the deposit amount, you can extend the account period for three years. It can be extended within one year of maturity. Interest on extended account is available at the rate applicable on the date of maturity.
How to open an SCSS account?
It can be done at any post office or designated bank branch. For this, an application form with your details, age proof, and KYC documents are required.
Banks that offer the facility
ICICI Bank, State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB), Canara Bank, Union Bank of India, HDFC Bank, IDBI Bank, Indian Bank, Bank of India, UCO Bank, and Axis Bank.