7.4 percent interest is getting in this savings scheme, start an account in 1000 rupees and get regular income
The Senior Citizen Savings Scheme (SCSS) interest rate changes every quarter and is reviewed by the Ministry of Finance. The current SCSS interest rate is 7.4% per annum. The current rate of SCSS is lower than 8.6% per annum which was introduced in the last financial year 2019-2020.
Senior citizens who want to get regular income can apply for Senior Citizen Savings Scheme (SCSS) can be invested in. This tax-saving scheme (Tax saving scheme) is also known as This scheme is considered the best for retirement. When you retire and you will have no source of regular income, then the Senior Citizen Scheme will be the biggest support for you in the form of fixed income. The money received from SCSS is your retirement fund (retirement fund), but it will help a lot with household expenses, travel, lifestyle, and other needs. For this, you have to invest continuously in SCSS.
This scheme is for 5 years. However, you can extend it for another 3 years to continue. You will have to submit Form B to take the scheme further. You will only be allowed one extension. SCSS government-backed investment scheme is available through post offices as well as government or private banks. Whether you invest through a bank or post office, you will get the same interest rate, benefits, features, and terms everywhere. Under the SCSS scheme, you can deposit a minimum lump sum of Rs 1,000 and a maximum of Rs 15 lakh in an account.
Who can open an account
- Only senior Indian residents above 60 years of age are eligible for the scheme
- This scheme is available to individuals who are 55 years or more but less than 60 years and have retired under the applicable Retirement Scheme or VRS rules
- Retired people who have served in the army can apply for the scheme after the age of 50, subject to certain conditions.
- Hindu Undivided Families, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) are not entitled to apply for SCSS
- A nomination facility is available provided the person is an Indian citizen
How much interest
The interest rate of the Senior Citizen Savings Scheme changes every quarter and is reviewed by the Ministry of Finance. The current SCSS interest rate is 7.4% per annum. The current rate of SCSS is lower than 8.6% per annum which was introduced in the last financial year 2019-2020. The interest in the scheme increases every year on a compounding basis. The interest payment is credited to your SCSS account every year.
Tax exemption is also available if a senior citizen opens an SCSS account. Account-holders are eligible to avail of tax exemption of up to Rs 1.5 lakh in a year under Section 80C of the Income Tax Act, 1961. The interest earned in the scheme is also taxable. Tax deducted at source or TDS is applicable if the interest earned is more than Rs.50,000 in a year.