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Senior Citizen Savings Scheme is an investment scheme which has been started especially for senior citizens. Investments in this scheme get 8.2 percent interest annually. Its lock-in period is for five years. Here we tell you about the facilities available in this investment scheme.

HighLights

1. You can invest a maximum of Rs 30 lakh
2. Maturity period can be extended up to three years
3. You also get the benefit of income tax exemption

Business Desk, Indore (Senior Citizen Savings Scheme). Every month, salaried employees deposit some amount from their basic salary in their Provident Fund and this amount is given by the company. This scheme of EPFO ​​is considered a good investment option for employees. After retirement, employees get the amount deposited in this fund. This amount is quite high.

Many employees plan to invest the amount they receive after retirement. Here we are going to tell you about an investment plan in which you can get good returns by investing.

what is the scheme

The name of this investment scheme is Senior Citizen Saving Scheme (SCSS). This is a retirement benefit program, which the government has launched especially for senior citizens. You can open an account in a bank or post office for this scheme . After investing in this scheme, you get a fixed amount every month.

What are the benefits (Benefits of SCSS)

A lump sum amount is invested in Senior Citizen Savings Scheme (SCSS). Its maturity period is five years. After this, the maturity period can be extended for another three years. Investors can invest a maximum of thirty lakh rupees in this scheme, on which they get 8.2 percent interest annually. The special thing is that one can also get the benefit of tax exemption on investment up to Rs 1.5 lakh in SCSS under Section 80C of the Income Tax Act.

You can open a joint account

If both you and your wife are eligible for this investment scheme, then you can also open a joint account. You can invest a maximum of Rs 30 lakh in a joint account. If you open separate accounts, then a maximum of Rs 60 lakh can be invested.

How to get 20 thousand rupees

If you invest Rs 30 lakh, you will get 8.2 percent interest on it. According to this, you get an interest of Rs 2 lakh 46 thousand annually. That is, you can get interest of Rs 20,500 every month. At this interest rate, you can get a total interest of Rs 12,30,000 in five years.

Who is eligible (Eligibility for SCSS)

• For this, the age of the investor should be more than 60 years.
• Employees taking VRS at the age of 55 to 60 are also eligible.
• Retired defense personnel also get its benefit.

Penalty is levied on pre-maturity

Although the lock in period in this SCSS is 5 years, but if you withdraw the money before this, then you may have to pay a penalty for it. Which depends on when you opened the account.