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The Senior Citizens Savings Scheme (SCSS) is primarily for the senior citizens of India. The scheme offers a regular stream of income with the highest of safety and tax saving benefits. It is an apt choice of investment for those over 60 years of age.
What are the benefits of senior citizen saving scheme?
Senior Citizen Savings Scheme (SCSS) Highlights Interest Rate 7.40% per annum (Q2 FY 2021-22) Maximum Investment Amount Rs. 15 Lakh or the amount received on retirement, whichever is lower Benefits Safe and reliable investment High returns as compared to FD or Savings Account Tax benefit up to Rs. 1.5 Lakh.
What is a senior citizen saving scheme?
Senior Citizen Savings Scheme is a government-backed scheme. SCSS is a government-backed retirement savings programme. 2. People above 60 or those who have opted for VRS and are within the age bracket of 55-60 and retired defence personnel over the age of 50 can also invest in this scheme. 3.
Is SCSS interest rate fixed for 5 years?
The interest rate declared during the time of investment remains fixed throughout the maturity tenure and is not affected by alterations in a later quarter. For instance, Mr. Sunil deposited Rs. 2 Lakh in SCSS on 11th January 2018.
Can we withdraw from senior citizen saving scheme?
“Since the SCSS has a 5-year lock-in period, any withdrawals prior to that are treated as premature withdrawals even if it is due to the death of the depositor. Premature withdrawals under the scheme also attract a major penalty which ranges from 1-1.5% on the principal amount,” R.
Who is eligible for senior citizen saving scheme?
Resident individuals who satisfy the following criteria can invest in SCSS: Senior citizens of India aged 60 years or above. Citizens who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation and in the age bracket of 55-60 years. Retired defense personnel above 50 years of age and below 60 years of Oct 25, 2021.
Is SCSS a good scheme?
Investment experts say Senior Citizen Saving Scheme (SCSS) are good at providing assured investment return but if the aim is to seek regular income then Pradhan Mantri Vaya Vandana Yojana (PMVVY) can be contemplated. The scheme assures a guaranteed return on the investment amount.
Is SCSS available in SBI?
The Final Words! All the individuals who are eligible to invest in this scheme can invest by opening an SBI SCSS account through any branch of SBI.
Which scheme is best for senior citizens?
Senior Citizen Savings Scheme (SCSS) SCSS is an excellent investment option for senior citizens looking for long-term saving schemes which offer security with additional benefits. You can avail of the scheme from post offices and recognised banks around the country.
What is the FD interest rate for senior citizen?
Top Bank Senior Citizen FD Rates Senior Citizen Best FD Rates 2021 Fixed Deposits with Bank Less than 1 year More than 5 years SBI 2.90% p.a. to 4.90% p.a. 5.40% p.a. HDFC Bank 3.00% p.a. to 4.90% p.a. 6.25% p.a. Canara Bank 2.95% p.a.to 4.95% p.a. 6.00% p.a.
Can I invest every year in SCSS?
The SCSS account is transferable across the country. The account is initially opened for a period of five years which can be extended by three years. It is among the safest investment options for senior citizens.
Is money safe in SCSS?
The capital in the SCSS is completely protected as the scheme is backed by the Government of India. It is however not inflation protected, which means whenever inflation is above the current interest rate, the deposit earns no real returns.
Which is best monthly income scheme for senior citizens?
1) Senior citizens savings scheme (SCSS): You can invest ₹15 lakhs in SCSS which is a five-year product extendable by another three years. Interest rates are currently 7.40% per annum. One can opt for quarterly payouts. It can be bought through most public sector banks or Indian Post Offices.
What is the deposit period of senior citizen saving scheme?
The tenure of this scheme is 5 years, therefore the deposits mature after 5 years from the date of account opening. However, the senior citizens with SCSS account have the option of exceeding the tenure for another 3 years. The extension can be made once within 1 year of maturity of the Senior Citizen Savings Scheme.
Which bank is best for SCSS scheme?
List of banks that offer SCSS ICICI Bank. Vijaya Bank. Union Bank of India. UCO Bank. Syndicate Bank. Indian Bank. Punjab National Bank. IDBI Bank.
Can SCSS be continued after death?
When the first holder in the SCSS (Senior Citizen Savings Scheme) account dies, the second holder (spouse) is allowed to continue the account even when he/she does not meet the age criteria of 60 years as required under the rules.
Which scheme is best in Post Office 2021?
Post Office Interest Rates 2021 Scheme Interest Rate (% p.a) Best for Post Office Time Deposit Account (TD) 5.5 Small savings Post Office Monthly Income Scheme Account (MIS) 6.6 Small savings Senior Citizen Savings Scheme (SCSS) 7.40 Retirement Public Provident Fund Account (PPF) 7.10 Risk-averse investors.
What is the interest rate of FD in SBI for senior citizen?
At present, SBI gives a 5.4% interest rate on five years FD for the general public. If a senior citizen puts a fixed deposit under the special FD scheme, then the interest rate applicable to the FD will be 6.20%. These rates are with effect from 8 January 2021.
Is SCSS available in HDFC Bank?
HDFC Bank provides a higher interest rate of 75 bps on these special deposits. This implies that under HDFC Bank Senior Citizen Care FD senior citizens will get good returns of 6.25%.
Can I invest 15 lakh each in SCSS and Pmvvy?
Rs 15 lac is the maximum amount that can be invested in PMVVY (for monthly pension alternative). Multiple SCSS accounts can be opened, but the cumulative total of all contributions in all SCSS accounts for each senior citizen should not surpass Rs 15 lac.
Is PM Vaya Vandana Yojana good?
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is retirement cum pension scheme announced by the Indian Government. The scheme pays out regular pension and the frequency can be monthly, quarterly, or yearly. The PMVVY is an excellent alternative to traditional bank deposits.
Which banks have SCSS?
List of Banks which Offer SCSS Accounts Andhra Bank. State Bank of India. Bank of Maharashtra. Allahabad Bank. Bank of Baroda. Punjab National Bank. Indian Bank. Indian Overseas Bank.
