Good news about the Senior Citizens Savings Scheme account! Senior folks will now get a monthly payment of Rs. 20,500; see the specifics of the policy

Good news about the Senior Citizens Savings Scheme account! Senior folks will now get a monthly payment of Rs. 20,500; see the specifics of the policy

Good news about the Senior Citizens Savings Scheme account! Senior folks will now get a monthly payment of Rs. 20,500; see the specifics of the policy

Senior Citizens Savings Plan: One feature of the Senior Citizens Savings Plan is the ability 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.

Anybody who is retired finds himself acutely aware of his savings. His life's savings should not be invested in any financial venture where there is a chance of losing money. This is a result of the fact that most investors over 60 are risk averse and cautious. For this reason, a well-liked choice for elderly persons is the elderly 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. This program is now more appealing than it was previously due to the rise in the maximum deposit limit and the interest rate.

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 quarter ending in March, 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. Section 80C of the Income Tax Act allows for tax exemption of up to Rs 1.50 lakh for investments made in SCSS.

The Senior Citizen 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 one account) may be placed in two separate accounts in such a scenario. This account has a three-year extension option following its five-year maturity. You may create this account if you are over 60 years old, a retired military member whose minimum age is 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

Maximum amount deposited: 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 for a year: Rs 4,81,200

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

Rs 84,06,000 lakh in total returns (60,00,000 + 24,06,000)

computation for a single account

The maximum amount deposited is 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 returns (30,00,000 + 12,03,000)