Senior Citizens Savings Scheme 2023 (SCSS) is one of the most interest paying schemes of the post office. Along with interest on this, the benefit of tax exemption is also available.
The interest received on small savings scheme by the Central Government has been increased by 0.70 percent at the end of March. After this, 8.2 percent interest is being given on the Senior Citizens Savings Scheme (SCSS) run by the post office for senior citizens, which is an average of 7.5 percent interest received by senior citizens in bank FDs. rate is higher. Along with high interest, it has many other benefits, let us know.
Maturity period of 5 years
The maturity period of Senior Citizens Savings Scheme is five years. That is, you have to stay invested in this scheme for at least five years. After completion of the maturity period, you can get it extended for three years. A penalty has to be paid if you close your account before this time period.
No interest will be paid if you close the account within one year of opening it. If you withdraw after one year, then there is a penalty of 1.5 percent and for closing the account after two years, there is a penalty of one percent.
Maximum Investment and Interest
You can invest up to a maximum of Rs 30 lakh in the Senior Citizens Savings Scheme of the Post Office . It can be started with a minimum investment of Rs. In this scheme, an annual interest of 8.2 percent is being given to the investor, which is paid on a quarterly basis.
income tax exemption
If you invest in this scheme, then you get a rebate of up to Rs 1.5 lakh in a year under Section 80C of Income Tax.
Who can open SCSS account
Any Indian citizen above the age of 60 years can open an account in the Senior Citizens Savings Scheme. Also, a retired government employee below 55 to 60 years can open SCSS account within one month of his retirement. Whereas, for defense employees, this limit is between 50 and 60 years.
