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When we are young,  we are capable of meeting our needs. But as age grows, peoples are not able to make too much extra money. To live a good life after retirement or at old age, we should have a sustainable income.  When the story comes to sustainable income, the option of government investment is always highlighted. In today's blog, we will provide detailed information on senior citizen saving scheme.  you will get to know, how this scheme works, what is the benefiets and 

What is the Senior Citizen Saving Scheme? 
 

Every senior citizen needs financial stability and security after retirement. Senior Citizen Savings Scheme (SCSS).  

It is a great investment option supported by the central government, which currently offers 8.20% annual interest and the interest is credited to your account every quarter. 

This scheme is for five years, and after the expiry of the term, you get the option to extend for another three years. This scheme helps a lot in financial planning for senior citizens.

How does SCSS work?
 

After opening an SCSS account, you get 8.20% interest on the amount you invest, and the government deposits the interest directly into your account every quarter (on the first of April, July, October, and January). 

This gives you a regular income, which is very useful for meeting monthly expenses. For example, this amount supports you to meet household expenses, medicines or small and large needs.

Investment and Eligibility: 

Investment Limit: You can invest from a minimum of ₹1,000 to a maximum of ₹30 lakh.

Eligibility: To open an account, you should be 60 years or above. However, Retired Government Employees above 55 years and Retired Army Personnel above 50 years are also eligible for the scheme.

Tax Benefits and TDS:
 

Tax Deduction: The amount invested in SCSS is eligible for tax deduction up to ₹1.5 lakh under Section 80 C of the Income Tax Act.

TDS: If your annual interest is more than ₹50,000, then TDS may be applicable on it. But you can avoid TDS by filing Form 15H or 15G, which is more beneficial for senior citizens.

Extension and Premature Withdrawal:
 

Extension: After the expiry of the five-year term, you can extend the account for another three years. For this, you have to apply within one year of the expiry.

Early Withdrawal: If you need money, you can withdraw money after one year of account opening, but there is a penalty:

In the first year: No Penalty

1-2 years: 1.5% penalty.

In 2-5 years: 1% penalty.

How to open an account?

 KYC documents: 

PAN card, Aadhaar card, photo, and proof of retirement.

Why choose SCSS?
 

SCSS is a Trustworthy and Beneficial scheme for senior citizens. Some of its special features:

High Interest Rate: Your income increases due to the interest rate of 8.20%.

Tax Savings: Tax benefits under Section 80C are available.

Flexibility: Three-year extension option after five years.

Security: Your money is completely safe due to the government guarantee.

Regular I ncome: Quarterly interest provides support for monthly expenses.

Conclusion: 
 

If you want financial freedom and stability after retirement, then SCSS is a great option. This scheme offers you regular income, tax savings and complete security. Be it health expenses, travel or family needs, SCSS helps you build your financial future with confidence. Visit your nearest post office or bank today and secure your retirement by opening an SCSS account. 
 

FAQ:
 

1. What is the locking period investment in  SCSS? 

Ans: SCSS has a lock-in period of 5 years. After that you increase up to 3 years, but it's not mandatory.
 

2. How much of the maximum amount can be invested?

Ans: If you meet other eligibility criteria, then you can invest up to a maximum of 30 lakh. 
 

3. Can I withdraw money from my  SCSS? 

Ans: Yes, you can withdraw money after one year. But it has penalty rules.