Savings scheme

Benefits of the Seniors Savings Plan, PPF (Public Provident Fund). Lily

The PPF and the Senior Citizen Savings Scheme are good long-term investment options

Investors looking for long-term, secure investments to secure a secure future for themselves and their families can always rely on proven postal savings plans.

Let’s look at these postal savings plans for long-term investments.

Seniors Savings Plan (SCSS)

The Senior Citizen Savings Scheme (SCSS) is a small savings scheme that is very popular among senior citizens despite the presence of other similar schemes like the National Pension Scheme (NPS) and Pradhan Mantri Vyay Vandana Yojana.

Adults over 60, retired civil servants over 55 but under 60, and retired military over 50 but under 60 can open an SCSS account.

Under this scheme, a senior can open an account individually or jointly with their spouse by making a minimum deposit of Rs 1,000 with a maximum deposit of Rs 15 lakh.

Senior citizens can also claim tax benefits of up to Rs 1.5 lakh under Section 80C on investments made under the SCSS.

The plan currently offers a return of 7.4 percent per annum, payable quarterly. The SCSS has a maturity of 5 years. However, early withdrawals are allowed anytime after opening with a penalty.

Public Provident Account (PPF)

The PPF is one of the most popular investment products for long-term investors. With a minimum deposit of Rs 500 and a maximum annual contribution of Rs 1.5 lakh, an adult resident of the country can open a PPF account. On the other hand, in the case of a minor, an account under the device can be opened in his name by a guardian.

Deposits under the PPF scheme are eligible for exemptions under Section 80C from Income Tax Act deductions. The PPF has a 15-year term and, on deposits, investors can earn interest at a rate of 7.1%, compounded annually.

In addition, interest earned under the Plan is fully tax exempt under the provisions of the Income Tax Act.

After five years, except for the year of account activation and depositors wishing to mature, a subscriber can withdraw up to 50% of the amount.

After completing the 15 year term period, an investor can also choose to extend the PPF account for an additional 5 years.

There is also a possibility to withdraw the amount from a PPF account prematurely in case of emergency, but only after five years of opening the account.

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