Senior Citizen Savings Scheme or SCSS is an investment scheme sponsor the Indian Government as a savings option for individuals who are either planning their retirement or have already retired. The scheme gives them an opportunity to enjoy continuous financial support post-retirement.
Besides, the Senior Citizen Saving Scheme interest rate is attractive and you will be eligible to receive a steady payment of interest every quarter. It is specifically meant for an individual over 60 years of age, and the amount is entitled to mature after a period of 5 years.
Additionally, since the scheme is government-back, the terms and conditions pertaining to the particular scheme remain consistent for every applicant and lender.
Benefits of Senior Citizen Savings Scheme
Individuals receive a regular income similar post their pre-retirement period, which is the most crucial advantage associate with it.
Similarly, there are certain benefits of choosing this scheme for investment over other schemes which makes it preferable for senior citizens. Alternatively, you can also opt for senior citizen FD which also comes with guaranteed returns and lucrative interest rates.
The benefits of a Senior Citizen Savings Scheme list below:
It is a safe way of investing money. Is it back by the Government of India, it offers both safety and assurance of your investment.
This investment scheme is highly transparent and easy to operate. You are eligible to pre-set monthly or quarterly disbursals of the accumulated interest. As you get an option to apply for it online, it allows you to keep a track of the same as well.
Alternatively, you can opt for fixed deposit schemes for a lump sum disbursal at the end of the maturity period for higher returns.
At the start of the scheme, your tenor is fixed at 5 years. However, you can extend it to another 3 years for your convenience, unlike the Senior Citizen FD Scheme, which has no cap on the number of renewals.
In order to avail of this scheme, you have to make an initial deposit of a minimal amount of Rs. 1,000. You can make deposits in multiples of Rs. 1,000, with the maximum limit being Rs. 15 Lakh.
Nevertheless, in case of the death of an individual who is the primary account holder before the maturity period, the account will get close and the heir will receive the maturity proceeds thereafter.
Eligibility of Senior Citizen Savings Scheme
If you wish to avail the Senior Citizen Saving Scheme interest rate, you are liable to follow the below-mentioned criteria in order to be eligible to open the savings account:
Be a citizen of India.
Should not belong to a Hindu undivided family. Even a foreign national or an NRI is not eligible for this investment scheme.
Must be of or more than 60 years old with the following exceptions:
In the age group between 55 and 60 years if opted for a voluntary retirement scheme (VRS) or superannuation and applies for this scheme within one month of retiring.
From the defense sector.
Therefore, it is important to know how to manage your money more effectively before you delve into an investment scheme post-retirement. Since it is your hard-earn money accumulate over all the years you work, you should be careful when opting for an investment.
Rate of interest under the Senior Citizen Savings Scheme
SCSS rates fix by the government and are subject to change as and when desired by the government itself. As of July 2019, the Senior Citizen Saving Scheme interest rate is 8.6%.
Altogether, this investment scheme can regard as one of the hacks to help you save money and make money at once. With regular steady returns and flexible tenor, this investment regard as the safest option for retired individuals looking for a stable and sustainable life after retirement.