Know the Latest SCSS Interest Rates in India

The Senior Citizens’ Saving Scheme, or SCSS, is a government-sponsor monthly income scheme. Any senior citizen of the nation, alone or jointly, may invest a lump sum amount in the plan and benefit from a monthly income and good tax advantages. SCSS is ideal for Indian people over the age of 60. Banks and post offices now provide a 7.4 per cent annual SCSS interest rate. Compare with the current FD rates to know the facts.

What is the current SCSS interest rate?

The SCSS interest rate is update quarterly. The current FD rate, i.e., SCSS interest rate 2021, is 7.4 per cent per year for the third quarter. Since the first quarter of fiscal 2020-21, the interest rate has remain constant.

What exactly is an SCSS Account?

An SCSS account enables qualified investors to invest a lump sum of money. The account will provide the investor with a monthly income after retirement while also providing tax advantages. Anyone over 60 may establish an SCSS account at any recognize bank or post office.

Postal Service SCSS Account

Like any other bank permit to create an SCSS account, a senior person may open an SCSS account at a post office. Establishing an SCSS account at a post office is similar to opening a post office savings account. To create an account, go to the local bank and examine the qualifying requirements and SCSS perks.

SCSS Eligibility Criteria

Individuals who fall into the below groups are eligible to invest in SCSS:

Indian citizens over the age of 60
Retire Indian citizens aged 55-60 (should have chosen Voluntary Retirement Scheme (VRS) or Superannuation)
Military Personnel (Retire and between 50-60 years of age)
How Much Money Can You Put Into SCSS?
SCSS allows qualifiy investors to create numerous accounts. However, the total amount of deposits made in the reports should not exceed Rs 15 lakh (the limit set by the government). The minimum deposit amount into an SCSS account is Rs 1,000. Furthermore, deposits must be made in one lump amount, and the investor may not establish more than one SCSS account at the same branch within the same month.

SCSS Tax Advantages

SCSS deposits/contributions are tax-deductible under Section 80C of the Income-tax Act of 1961. However, the interest generate on the SCSS investment is tax. The beneficiary must pay TDS on interest earnings over Rs 50,000 per year.

SCSS Maturity: What You Should Know

The Senior Citizen Savings Scheme is a 5-year maturity term. There is also the option to prolong the maturity period for three years. The investor may also elect a premature withdrawal. However, this comes with a penalty of 1.5 per cent of the total invest amount if done before two years and 1% after two years.

The Advantages of Investing in SCSS

SCSS is an excellent fixed-income investment plan for seniors. Investing in SCSS has a lot of advantages.

Fixed Income: SCSS provides a substantial annual return of 7.4 per cent on the entire invest amount. It is around 30-40% more than the SCSS interest rate on fixed deposits.

Safe and dependable: Because the Indian government sponsors the savings system, it is reliable and one of the safest investment products.

SCSS is one of the top retirement investment options for retire people. The interest gain from the plan enables them to live a respectable life.

Simple to Open: An SCSS account may be open at any government-approve banks in India and any nearby post office branch.

Extendable Tenure: An SCSS account has a 5-year maturity term. It may be extend for another three years, for eight years.

An SCSS account may be move to any branch (bank or post office) in India.

Tax Deduction: Under Section 80C of the Indian Tax Act, 1961, investors may claim a tax exemption of up to Rs 1.5 lakh.

How Do I Open an SCSS Account at a Bank or Post Office?

In a financial institution, Check with the closest branch of any government-approve bank to see whether it has an SCSS facility.
Request the SCSS account opening form and fill out the necessary information.
Complete the necessary documents.
Pay the amount you want to put into the plan.
After the payment is complete, the account will be open
In a Postal Service, Request an SCSS account application form.
Enter the number of the savings account into which the interest will be deposit
Enter more information and attach an image of the account holder.
Mention the nominee’s name.
Please provide all required documentation.
SCSS is a perfect fixed-income investing strategy for older persons. It has extra benefits like tax savings, up to 8 years of maturity, security, dependability, etc.

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