Senior Citizen Savings Plan: Excellent news for seniors! They will now get a monthly reward of Rs. 20,500. View the specifics of the plan here

 Senior Citizen Savings Plan: Excellent news for seniors! They will now get a monthly reward of Rs. 20,500. View the specifics of the plan here

Account for Senior Citizens Savings Plan: Senior Citizens Savings Plan allows you to create a joint account if you are a husband and wife. Additionally, a husband and wife may create two different accounts. Tell us anything you can about it.

Everyone becomes highly aware of their money after retirement. His whole life's savings is not something he wants to put into any venture where there is a chance of losing money. This is because, on general, investors who are 60 years of age or older are risk averse and do not want to take on financial risks. Because of this, older persons often choose the older persons Savings Scheme (SCSS), which is a part of the Post Office Small Savings Scheme.

Since it's a post office system, security is guaranteed 100 percent. The plan has gained greater appeal due to the rise in the maximum deposit limit and the income generated on it.

Interest rates, deposit restrictions, and qualifications

The Senior Citizens Savings Scheme (SCSS) now has a maximum deposit limit of Rs 30 lakh. This cap was formerly set at Rs 15 lakh. This year's budget included an announcement to raise this cap. On the other hand, effective of April 1, 2023, the interest rate for this government program is now 8.02 percent annually. For the December quarter, this interest rate is fixed. This government plan allows investments of at least Rs 1000. The Singh account has a maximum limit of Rs 30 lakh. Under Section 80C of the Income Tax Act, investors in SCSS are eligible for tax exemption on contributions up to Rs 1.50 lakh.

The Senior Citizens Savings Scheme allows you to register a joint account if you are a husband and wife. Additionally, a husband and wife may create two different accounts. A maximum of Rs 60 lakh (or Rs 30 lakh in a single account) may be placed in two separate accounts under such circumstances. When the account matures in five years, you may extend it for an additional three years. You may establish this account if you are over 60 years old, a retired military personnel whose age is at least 60 years old, or retired workers in the 55–60 age range who have chosen to participate in the Voluntary Retirement Scheme (VRS).

computation on two distinct accounts

Deposit maximum: Rs 60 lakh

Rate of interest: 8.02 percent annually

Time to maturity: five years

Interest paid per month: Rs 40,100

Interest for a quarter: Rs 1,20,300

Interest earned year: Rs 4,81,200

24,06,000 is the total interest in 5 years.

Rs 84,06,000 lakh in total return (60,000 + 24,06,000)

computation with only one account

Deposit maximum: Rs 30 lakh

Rate of interest: 8.02 percent annually

Time to maturity: five years

Interest each month: Rs 20,050

Interest for a quarter: Rs 60,150

Interest for a year: Rs 2,40,600

interest totaled in five years: Rs 12,03,000

Rs 42,03,000 lakh in total return (30,00,000 + 12,03,000)