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This saving scheme is best for fixed income in old age, monthly pension of Rs 20 thousand will start.

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Retirement Planning

Photo:FILE retirement planning

after job Everyone worries about retirement. This is because there is no monthly income after the job ends. Then it becomes difficult to meet the necessary expenses. Keeping this in view, today we are telling about the best saving scheme for senior citizens, Senior Citizen Savings Scheme (SCSS). Backed by the government, this savings scheme offers the highest interest rates. With an interest rate of 8.2% per annum, SCSS offers senior citizens the opportunity to keep their retirement funds safe and at the same time earn regular income. By investing in this scheme, senior citizens can easily get Rs 20 as monthly pension.

How does SCSS work?

Senior citizens can open SCSS account individually or jointly with their spouse. A maximum deposit of ₹30 lakh per account is allowed in this scheme, with a minimum investment of ₹1,000. Deposits up to ₹1 lakh can be made in cash, while amounts above ₹1 lakh will have to be paid by cheque.

Two accounts, double benefits

Retired couples can avail maximum benefits by opening separate SCSS accounts, effectively doubling their investment limit to ₹60 lakh. This makes quarterly interest ₹ 1,20,300 and annual income ₹ 4,81,200. Over a maturity period of five years, this can yield a total interest of ₹24,06,000.

How to get 20 thousand rupees monthly

Let us assume that an elderly person deposited a lump sum of Rs 30 lakh in his SCSS account after his retirement. By doing this he

  • Quarterly interest: ₹ 60,150 will be available.

  • Annual interest: ₹ 2,40,600 will be available.

  • Total interest received in five years: ₹ 12,03,000.

  • Total maturity amount: ₹42,03,000.

That means after every three months ₹ 60,150 will come to his account. By dividing it into three parts, one can easily get Rs 20 thousand per month as pension.

Main benefits of this scheme

  1. Return: SCSS offers an annual interest rate of 8.2%, making it the highest paying small savings scheme along with Sukanya Samriddhi Yojana.

  2. Tax Exemption: The deposits are eligible for tax exemption under Section 80C of the Income Tax Act, which provides additional savings for account holders.

  3. Complete Security: Backed by the government, this scheme ensures 100% security of the deposited amount.

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