Senior Citizen Savings Scheme: Benefits, Interest Rates and Income Generation

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The Senior Citizen Savings Scheme (SCSS) is a government-backed savings scheme designed specifically for senior citizens above the age of 60 years. This scheme offers several benefits, including attractive interest rates and a steady source of income for senior citizens.

Under the SCSS scheme, senior citizens can invest up to a maximum of Rs. 15 lakhs and earn an interest rate of 7.4% per annum. The interest is payable quarterly and is subject to income tax. The maturity period for the SCSS scheme is 5 years, which can be extended by an additional 3 years. The SCSS scheme is backed by the Government of India, which ensures that the investment is safe and secure.

One of the primary benefits of the SCSS scheme is the steady source of income it provides. Senior citizens can earn more than Rs. 1 lakh per month, depending on the amount invested. The interest earned on the investment is paid out quarterly, which can be a significant source of income for senior citizens who are dependent on their savings.

Another benefit of the SCSS scheme is that it is easy to open and operate. Senior citizens can open an SCSS account at any post office or authorized bank branch. The documentation requirements are minimal, and senior citizens can also nominate a beneficiary in case of their demise.

Staff Reporter