Senior Citizen Savings Scheme Rs 2 Lakh Guaranteed Income on Rs 5 Lakh Investment. ₹ 2 lakh guaranteed interest on deposit ₹ 5 lakh, you can open an account with ₹ 1000 in this scheme

New Delhi. After retirement, expenses remain despite the decrease in income. In such a situation, the right financial planning is very important. Therefore, it is necessary for senior citizens to invest their money in such a place, from where they get good interest as well as the investment is risky. Senior Citizen Savings Scheme (SCSS) is a safe and beneficial option for retired individuals, providing financial stability with regular income. Along with guaranteed income, tax exemption can also be availed by investing outright in this scheme.

Senior Citizen Savings Scheme (SCSS) is a government scheme. Therefore, there is no danger of drowning money in it. The special thing about this scheme is the interest found in it. SCSS gets 8.2% annual interest. This interest is more than other traditional investment options like FD. Also, on investing in this scheme, there is a benefit of tax exemption under Section 80C of the Income Tax Act.

Also read- Income taxpayers must check every quarter every quarter, ITR will not get any mess

Guaranteed income of ₹ 2 lakh on ₹ 5 lakh investment
According to the SCSS calculator, if a person invests a lump sum of ₹ 5,00,000, then the total amount will be ₹ 7,05,000 in 5 years. It will get an interest of ₹ 2,05,000. The interest of ₹ 10,250 every quarter will come in the account.

Minimum investment

Investment can be started with ₹ 1,000 in Senior Citizen Savings Scheme (SCSS). A maximum of ₹ 30 lakh can be invested in this scheme. Its maturity period is 5 years. The amount invested after 5 years is returned with interest.

Who can invest?

Tax on interest on interest

If the annual interest from all SCSS accounts is more than ₹ 50,000, then TDS will be deducted. However, TDS will not be deducted on depositing Form 15G/15H.

Other features of SCSS account

Joint Account: Husband and wife can open an account jointly. The maximum investment limit is ₹ 30 lakh.

Interest Payment: Interest is paid on a quarterly basis. It can be extracted in a savings account through auto credit or ECS.