Senior Citizen Savings Scheme: Senior Citizen can earn ₹12.3 lakh from interest only in 5 years through this special scheme, check the calculation
Senior Citizen Savings Scheme (SCSS) has been specially designed for the elderly. In this scheme, senior citizens are being given an interest of 8.2%. If you want to invest your retirement capital in a safe investment scheme, then through this scheme you can earn a guaranteed interest of ₹ 12.3 lakh in 5 years.
Senior Citizen Savings Scheme: After retirement, when there is no regular source of income, the lifelong savings are the biggest support. Every elderly person wants that his hard-earned money should be safe and he should get enough returns on it so that he can spend his old age comfortably. If you are also looking for such an investment option with safe and guaranteed returns, then a scheme of the post office can prove to be a ‘superhit’ for you.
The name of this scheme is Senior Citizen Savings Scheme (SCSS). It is specially made for the elderly, in which not only you get more interest than bank FD, but your money is also 100% safe. See how senior citizens can earn a huge amount of ₹ 12,30,000 from this scheme in 5 years only from interest.
What is Senior Citizen Savings Scheme (SCSS)?
SCSS is a small savings scheme backed by the Government of India, specially designed for citizens above 60 years of age. This is a deposit scheme in which you deposit a lump sum amount for 5 years and the government gives you guaranteed interest on it every three months.
Interest rate: Currently, it is getting a great interest of 8.2% per annum.
Minimum investment: You can start with just ₹1,000.
Maximum investment: Up to ₹30,00,000 can be invested.
How to get bumper interest of ₹ 12.30 lakh? Understand the calculation
The biggest attraction of this scheme is its high-interest return. Let us understand this with a simple calculation.
If a senior citizen invests the maximum limit i.e. ₹30,00,000 in this scheme, then-
Interest rate: 8.2% p.a.
Annual interest: 8.2% of ₹30,00,000 = ₹2,46,000
Quarterly interest: ₹2,46,000 / 4 = ₹61,500 (This amount will be credited to your account every 3 months)
Total interest in 5 years: ₹2,46,000 x 5 = ₹12,30,000
Thus, on maturity after 5 years, you will get back ₹42,30,000 by combining your investment (₹30 lakh) and total interest (₹12.30 lakh).
Understand how much return on how much investment
| Investment amount |
Quarterly Interest |
Total Interest in 5 Yrs |
Maturity Amount |
| ₹5,00,000 |
₹10,250 |
₹2,05,000 |
₹7,05,000 |
| ₹10,00,000 |
₹20,500 |
₹4,10,000 |
₹14,10,000 |
| ₹15,00,000 |
₹30,750 |
₹6,15,000 |
₹21,15,000 |
| ₹30,00,000 |
₹61,500 |
₹12,30,000 |
₹42,30,000 |
Who can invest in this scheme?
Any person who is 60 years of age or above can invest in it. At the same time, civil sector government employees taking VRS and those retiring from defense are given relaxation in age limit with some conditions.
Tax exemption and other important rules
Investing in SCSS gives the benefit of tax exemption up to ₹ 1.5 lakh under Section 80C of the Income Tax Act. Keep in mind that the interest received from this scheme is taxable. If the interest amount in a financial year is more than ₹ 1,00,000, then TDS is deducted. It can be extended within 1 year of maturity. Interest is received on the extended account at the rate applicable on the date of maturity.
The post Senior Citizen Savings Scheme: Senior Citizen can earn ₹12.3 lakh from interest only in 5 years through this special scheme, check the calculation first appeared on informalnewz.
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