Senior Citizen Savings Scheme (SCSS)

An Indian post office savings programme for older persons is called Senior Citizen Savings Scheme. You are able to invest a flat sum of up to Rs. 15 lakhs with a 5-year lock-in term. To guarantee that older persons receive consistent income, interest payments are made every three months. Because the government is supporting it, the plan is risk-free. Additionally, this scheme's investment qualifies for an income tax credit under section 80C. Therefore, this programme is suitable for you if you want to invest in your lump sum retirement savings and obtain significant returns. So without further ado, let's learn about the strategy and appropriately plan the retirement of you and your loved ones.

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The Senior Citizen Savings Scheme: What is it?

For seniors 60 years of age or older, the 5-Year Senior Citizen Saving Scheme is the most secure tax-saving investment choice. It's a government-sponsored plan to give seniors security in their latter years. As a result, the chance of losing your assets is essentially nonexistent. As the name implies, the initial maturity term is five years and may be subsequently extended for an additional three years.

Any post office, private bank, or public sector bank can create a 5-Year Senior Citizen Saving Scheme account. It seeks to offer:-

(i) The safest way to invest retirement assets in lump sums

(ii) Providing seniors with regular earrings (quarterly) after retirement

Section 80 C of the income tax allows for tax deductions for investments made under this plan.

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Benefits of investing in 5 years Senior Citizen Saving Scheme (SCSS)

(a) Tax Benefit: Section 80C allows you a tax benefit on investments up to Rs. 1.5 lakh.

(b) Longer Period: You can choose to prolong the time duration of your investments by an additional three years even after the initial five-year lock-in.

(c) Holding Jointly Permissible: You and your spouse are both allowed to have senior citizen savings accounts.

(d) Nominees: Your Senior Citizen Savings Scheme account may have one or more nominees.

(e) Investment of a Lump Sum: This option gives you a safe place to put your lump sum payment from your retirement. So, it's a one-time fee.

(f) Mode of Deposit: Cash or DD can also be used for the deposit. Transfers via the internet are not required. A deposit above Rs. 1 lakh must be made via check, though.

(g) Several Accounts: Up to a total of Rs. 15 lakh, you are permitted to have multiple 5-Year Senior Citizen Savings Scheme accounts.

(h) Offers Good Returns: The current interest rate is 8.6% compounded and paid weekly, which is a Good Return.

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