Business News Desk -The government runs several schemes to provide maximum benefits to senior citizens after retirement. One of these schemes is the Senior Citizens Savings Scheme. This is a 0% risk deposit scheme in which the elderly have to deposit the amount only once. Through this scheme, elderly people can earn more than Rs 12 lakh through interest. Understand how-
The amount is deposited for 5 years
Post Office Senior Citizens Savings Scheme is a deposit scheme. In this a fixed amount is deposited for 5 years. In this scheme, senior citizens can invest up to a maximum of Rs 30,00,000, while the minimum investment limit is Rs 1000. At present interest is being given on SCSS at the rate of 8.2%.
This way you can earn more than Rs 12 lakh
As we told you that in this scheme you can deposit maximum Rs 30,00,000. If you invest this much amount in this scheme, then in 5 years you will get Rs 12,30,000 as interest at the rate of 8.2%. Rs 61,500 will be deposited as interest every quarter. In this way, after 5 years you will get a total of Rs 42,30,000 as maturity amount.
You will also get tax benefits
This scheme is also very good in terms of saving income tax. This scheme provides tax benefits under Section 80C of the Income Tax Act. Under 80C, you can claim a deduction of Rs 1.5 lakh from the total income.
Who can invest
Any person who is 60 years of age or above can invest. Civil sector government employees taking VRS and defense retirees are given age relaxation with certain conditions. This scheme matures after 5 years.
You can also get extensions
If you want to continue the benefits of this scheme even after 5 years, you can extend the account tenure for three years after the deposit matures. It can be extended within 1 year of maturity. The extended account earns interest at the rate applicable on the maturity date.
how to invest
You can open an account in any authorized bank or post office to invest in Senior Citizens Savings Scheme (SCSS). The account can be opened by an individual or as a joint account with wife.