The SCSS is considered to be a safe and secure investment option for senior citizens.
Senior citizens 60 years of age and above can save money through the Senior Citizen Savings Scheme (SCSS). The scheme has government support and offers a higher interest rate than the majority of other savings schemes.
The SCSS is considered to be a safe and secure investment option for senior citizens in India. It provides a regular income stream and helps them meet their financial needs during their retirement years.
In the Union Budget for 2023–24, Finance Minister Nirmala Sitharaman announced to increase in the Senior Citizen Savings Scheme investment limit from Rs. 15 lakh to Rs. 30 lakh. (FY24).
Additionally, the government increased small savings scheme interest rates by up to 70 basis points for the quarter ending in April 2023.
With a minimum deposit of Rs. 1000 or multiple of Rs. 1000, anyone can register an account, either individually or jointly with their spouse. After five years from the date of account opening, the account may be closed. It may also be prolonged for an additional three years.
To get monthly income, a senior citizen couple can deposit up to Rs 60 lakh at a bank or post office. If a person wants to invest Rs 60 lakh in a reliable government-backed scheme, they might choose to put the entire sum in the Senior Citizen Savings Scheme in the name of their parents and put themselves on the plan.
The regular income produced by the scheme can be used to cover your elderly parents' daily expenses, and if you'd like, you can also utilise some of it for your own needs. The interest paid every quarter will not accrue extra interest if the account holder does not claim it. You will receive a complete refund of Rs 60 lakh when the plan matures.
For the first quarter of FY 2023–24, the interest rate for the Senior Citizen Savings Scheme (SCSS) is 8.2% yearly. (April–June). The invested money is subject to a quarterly interest payment.
Senior Citizen Saving Scheme 2023
- Senior-Citizen couple - Rs 60 lakh (Total Investment)
- Interest earned quarterly - Rs 1,23,000
- Tenure - 5 years
- Rate of interest - 8.2%
- Maturity Amount - Rs 60 lakh
- Total Interest - Rs 24,60,000
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