Everyone worries about retirement after a job . This is because after the job is over there is no monthly income. Then it becomes difficult to meet the necessary expenses. Keeping this in mind, today we are telling you about the best savings scheme for senior citizens, Senior Citizen Savings Scheme (SCSS). Backed by the government, this savings scheme offers the highest interest rate. With an annual interest rate of 8.2%, SCSS gives senior citizens an opportunity to secure their retirement funds and also earn regular income. By investing in this scheme, senior citizens can easily get Rs 20 as monthly pension.
How does SCSS work?
Senior citizens can open SCSS account individually or jointly with their spouse. The scheme allows a maximum deposit of ₹30 lakh per account, with a minimum investment of ₹1,000. Deposits up to ₹1 lakh can be made in cash, while amounts above ₹1 lakh must be paid by cheque.
Two accounts, double benefit
Retired couples can reap maximum benefits by opening separate SCSS accounts, effectively doubling their investment limit to ₹60 lakh. This gives a quarterly interest of ₹1,20,300 and an annual income of ₹4,81,200. Over a five-year maturity period, this can yield a total interest of ₹24,06,000.
How can you get 20 thousand rupees monthly
Let us assume that an elderly person deposited a lump sum of Rs. 30 lakh in the SCSS account after his retirement. By doing this, he will get a lump sum amount of Rs. 30 lakh.
- Quarterly Interest: You will get ₹60,150.
- Annual Interest: You will get ₹2,40,600.
- Total interest over five years: ₹12,03,000.
- Total Maturity Amount: ₹42,03,000.
That means ₹60,150 will come in their account after every three months. By dividing this into three parts, one can easily get 20 thousand rupees per month as pension.
The main benefit of this scheme
- Returns: SCSS offers an annual interest rate of 8.2%, making it the highest paying small savings scheme along with Sukanya Samriddhi Yojana.
- Tax exemption: The deposits are eligible for tax exemption under Section 80C of the Income Tax Act, which provides additional savings for account holders.
- Complete Security: Backed by the Government, this scheme ensures 100% safety of the deposited amount.
