In India, senior citizens often depend on fixed bank deposits (FD) or recurrent deposits (RD) for regular income after retirement. Most citizens over the age of 60 in the country have no appetite for risk and avoid stock markets or mutual funds as investment options. They often incline towards risk-free savings options that offer good returns. Because of this, bank and postal savings plans are still particularly popular among them, except for others. To ensure this, the central government has developed a program specifically for the elderly population who wish to secure their future.
The Senior Citizen Savings Scheme, or SCSS, is a special savings scheme specifically designed for the elderly population. It is for Indians over the age of 60, which means that the subscriber must be 60 years of age or older on the date of opening this plan. Thanks to this, subscribers can get a decent amount of returns and guaranteed income from the post or bank.
Features of the savings plan for seniors
-An individual can open an SCSS account with a minimum deposit of Rs 1,000, while the maximum can be raised to Rs 15 lakh. The amount deposited in the account must be in multiples of Rs 1,000.
-The rate of interest under this scheme is 7.4% which is one of the highest. Interest is quarterly and applicable from the date of deposit to March 31, June 30, September 30 and December 31.
-In the event of an excess deposit in the SCSS account, the excess amount will be immediately refunded to the depositor.
-The maturity period under this scheme is five years, but can be extended beyond three years.
-Investments under this program are eligible for the benefit of Section 80C of the Income Tax Act 1961. However, interest is taxable if the total interest on all SCSS accounts exceeds Rs 50,000 in a financial year.
-If an SCSS account is closed before one year, no interest will be due and if any interest paid into the account will be recovered in principle, in accordance with the rules.
-In the event of the death of the account holder, from the date of death, the SCSS account will bear interest at the rate of the general savings account.
Eligibility for the Savings Scheme for Seniors
Here is who can open an Epargne Seniors account:
-A person over the age of 60, who is an Indian citizen.
– Retired civilian employees aged over 55 and under 60, provided that the investment is made within one month of receipt of pension benefits.
-Retired Defense employees over the age of 50 and under 60 can open an SCSS account, provided the investment is made within one month of receiving pension benefits.
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