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Senior Citizens Savings Scheme (SCSS), is one of the most favoured savings schemes for senior citizens. People above 60, especially those who retire from their jobs and don’t have a regular source of income, can apply for the scheme. One of the most important aspects of the investment instrument is that it is managed by the Government of India.
The SCSS scheme allows an individual of the age of 60 years or more to open the account. An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open an account. However, the account is opened within one month of receipt of retirement benefits and the amount should not exceed the amount of retirement benefits. Currently, the interest rate for the Senior Citizen Savings Scheme is 8.2 per cent per annum. Any eligible individual is allowed to deposit a maximum of Rs 30 lakh in a SCSS account. Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.
A SCSS account holder can use the Senior Citizens Savings Scheme calculator to get the estimate of the maturity amount and interest amount on the deposit. The interest calculated would be for the whole term as well as quarterly interest amounts.
If a SCSS account holder deposits Rs 3 lakh for a 5-year tenure, the maturity amount
will be Rs 4,23,000. The beneficiary will be entitled to get Quarterly Interest of Rs 6,150, while the total interest earned in 5 years will accumulate to Rs 1,23,000.
On Rs 5 lakh deposit, a Senior Citizens Savings Scheme account holder will get Rs 7,05,000. The quarterly interest will be Rs 10,250 and the total interest earned in 5 years will be Rs 2,05,000.
Rs 20 lakh deposit in SCSS account
Principal Amount: Rs 20 lakh
Time Period: 5 years
Interest: 8.2 percent
Maturity Amount: Rs 28,20,000
Quarterly Interest: Rs 41,000
Total Interest Earned In 5 Years: Rs 8,20,000
Rs 30 lakh deposit in SCSS account
Maturity Amount: Rs 42,30,000
Quarterly Interest: Rs 61,500
Total Interest Earned In 5 Years: Rs 12,30,000
