SCSSS: If there is a fixed income every month after retirement, then life seems more relaxed. At such a time, safe investment and guaranteed returns schemes become very important. Senior Citizen Savings Scheme of the post office is one such government scheme that not only gives good interest rate, but also assures tax savings and regular income. This scheme is specially created for senior citizens who want to earn fixed every month on their savings without risks after retirement.
What is scsss?
SCSS is a safe savings scheme that is currently getting 8.2% annual interest, which is higher than the fixed deposit of many banks. You can start investing in this from just Rs 1,000, and you can deposit up to a maximum of Rs 30 lakh.
Who can invest?
Any person who is 60 years or older can invest money in this scheme.
If a government employee has taken voluntary retirement between 55 and 60 years of age, he is also eligible.
Retired defense personal can invest at the age of 50 to 60 years.
You can also open a joint account with your wife/husband.
How much will you get every month?
If a person invests 30 lakh rupees in this scheme, then he will get an interest of about 2.46 lakh rupees every year. This money comes in the account every three months, that is, regular income of about 20,500 rupees a month.
If you invest 20 lakh rupees, then in five years, the total returns including interest will be about 28.2 lakh rupees. During this time, there will be an income of about Rs 41,000 i.e. Rs 13,666 every three months.
Relief in tax too
Through SCSS, you can also get a tax exemption of up to Rs 1.5 lakh per annum under Section 80C.
Time and rules
This scheme is for 5 years, which can be extended to 3 years.
If you close the account before a year, no interest will be received.
1% interest will be deducted if closed between 2 and 5 years.
Why is Scass a good option?
Government guarantee, good interest rate, tax savings and fixed income all make SCSS a reliable and profitable deal for retired people. If you want a stable income after retirement, there is the best option for them.