About SCSS
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument that offers one of the highest interest rates for risk-free investments. It's designed to provide senior citizens with a regular, reliable income after retirement.
| Feature | Details |
|---|---|
| Interest Rate | ~8.2% per annum (among the highest for govt schemes) |
| Eligibility | Age 60+ (55+ for retired defence/govt employees) |
| Maximum Investment | ?30 Lakh |
| Tenure | 5 years (extendable by 3 years) |
| Interest Payout | Quarterly (credited to bank account) |
| Premature Closure | After 1 year (with penalty: 1.5% before 2 years, 1% after) |
| Tax Benefit | Section 80C deduction on investment. Interest taxable. TDS if interest > ?50,000/year. |
SCSS vs Other Senior Citizen Options
| Feature | SCSS | Senior FD | PMVVY | RBI Floating Rate Bond |
|---|---|---|---|---|
| Interest Rate | ~8.2% | 7-7.75% | 7.4% | ~8.05% |
| Max Investment | ?30L | No limit | ?15L | No limit |
| Payout | Quarterly | Monthly/Quarterly | Monthly/Quarterly/Annual | Semi-annual |
| 80C Benefit | Yes | Yes (5yr FD) | No | No |
| Risk | Zero (Govt) | Low (Bank) | Zero (Govt/LIC) | Zero (Govt) |
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