Senior Citizens Savings Scheme : How Rs 10 lakh, Rs 20 lakh, Rs 30 lakh investment will become Rs 14.10 lakh, Rs 28.20 lakh and Rs 42.30 lakh
The Senior Citizens Savings Scheme Account (SCSS) offers a guaranteed 8.2% annual interest, with tax benefits up to Rs 1.50 lakh under Section 80C. Deposits exceeding Rs 50,000 in interest incur TDS. Rs 10 lakh, Rs 20 lakh, and Rs 30 lakh deposits yield Rs 14.10 lakh, Rs 28.20 lakh, and Rs 42.30 lakh respectively after 5 years
Senior Citizens Savings Scheme Account (SCSS) is a post office scheme that provides guaranteed return in the form of 8.2 per cent annual interest to senior citizens. The central government scheme offers tax benefits up to Rs 1.50 lakh on deposits under Section 80C of the Income Tax Act. Individuals above 60 years of age can open a single or a joint account in SCSS. An SCSS account holder needs to pay TDS if the earnings from the interest exceeds Rs 50,000 in a financial year. Know more about the scheme and what you will get on one-time deposits of Rs 10 lakh, Rs 20 lakh and Rs 30 lakh in it.
When you are in your youth, you have energy, creative ideas to earn livelihood. Companies are keen on hiring young employees; institutions respect new ideas coming from youngsters. But as you grow old, job opportunities deplete, source of earning may become less and you don’t have energy to do taxing jobs. In such a situation, investment that give returns in the form of guaranteed returns come handy for senior citizens. With an aim to provide income to senior citizens, post office runs Senior Citizens Savings Scheme Account (SCSS), where one get income from interest of on-time investment. Focused on senior citizens, The central government scheme provides the joint highest interest rate of 8.2 per cent per annum along with Sukanya Samriddhi Yojana.
An individual above 60 years of age can open the SCSS account with a minimum deposit of Rs 1,000 and in multiples of Rs 1,000.
The account has a maturity period of five years, which can be extended for another three years.
The maximum deposit under the scheme is Rs 30 lakh.
In this write-up, we will tell you how one-time investment of Rs 10 lakh, Rs 20 lakh and Rs 30 lakh can give you guaranteed returns of Rs 4.10 lakh, Rs 8.20 lakh and Rs 12.30 lakh, respectively.
But before that know the Post Office scheme with the highest interest rates, basics of SCSS, and calculations.
Senior Citizens Savings Scheme Account: Post Office schemes with their interest rates and returns
| Instruments | Rate of interest w.e.f 01.01.2024 to 31.03.2024 | Compounding Frequency* |
| Post Office Savings Account | 4 | Annually |
| 1 Year Time Deposit | 6.9 (Annual Interest ₹708 for ₹10,000/-) | Quarterly |
| 2 Year Time Deposit | 7.0 (Annual Interest ₹719 for ₹10,000/-) | Quarterly |
| 3 Year Time Deposit | 7.1 (Annual Interest ₹719 for ₹10,000/-) | Quarterly |
| 5 Year Time Deposit | 7.5 (Annual Interest ₹771 for ₹10,000/-) | Quarterly |
| 5 Year Recurring Deposit Scheme | 6.7 | Quarterly |
| Senior Citizen Savings Scheme | 8.2 (Quarterly Interest ₹205 for ₹10,000/-) | Quarterly and Paid |
| Monthly Income Account | 7.4 (Monthly Interest ₹62 for ₹10,000/-) | Monthly and paid |
| National Savings Certificate (VIII Issue) | 7.7 (Maturity Value ₹14,490 for ₹10,000/-) | Annually |
| Public Provident Fund Scheme | 7.1 | Annually |
| Kisan Vikas Patra | 7.5 (will mature in 115 months) | Annually |
| Mahila Samman Savings Certificate | 7.5 (Maturity Value ₹11,602 for ₹10,000/-) | Quarterly |
| Sukanya Samriddhi Account Scheme | 8.2 | Annually |
Senior Citizens Savings Scheme Account: Who can open account in SCSS
Individuals above 60 years of age, retired civilian above 55 years and below 60 years of age, and retired defence employees above 50 years of age and below 60 years of age are eligible to open SCSS account.
The account can be opened as individually or jointly with spouse only. However, only the first account holder can get the deposit in a joint account.
Senior Citizens Savings Scheme Account: Interest rate
The interest rate in the SCSS is 8.2 per cent counted annually and payable quarterly.
The interest is payable from the date of deposit to March 31/Sept 30/December 31 in the first instance and thereafter, as per India Post website.
The interest shall be payable on April 1, July 1, October 1, and January 1.
Senior Citizens Savings Scheme Account: Tax benefits
One gets tax benefits on deposits of up to Rs 1.50 lakh under Section 80C of the Income Tax Act.
Senior Citizens Savings Scheme Account: Tax calculation
Interest earnings from SCSS are taxable if total interest in all SCSS accounts exceeds Rs.50,000 in a financial year.
In that case, TDS at the prescribed rate is deducted from the total interest paid.
If one submits forms 15 G/15H and their accrued interest is not above the prescribed limit, they don’t have to pay any TDS.
Senior Citizens Savings Scheme Account: Here’s what Rs 10 lakh, Rs 20 lakh, Rs 30 lakh deposits will give you
| Corpus at the end of maturity | |||
| Rs 10 lakh investment | Rs 20 lakh investment | Rs 30 lakh investment | |
|
Maturity amount after 5 years |
Rs 14.10 lakh | Rs 28.20 lakh | Rs 42.30 lakh |
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