Gross deposits under Senior Citizen Savings Scheme (SCSS) for senior citizens jumped over 1527% between 2013-14 and 2021-22, according to Government data. The total gross deposits under this popular small savings scheme for senior citizens in post offices in 2013-14 was Rs 1997.9 crores. It increased to Rs 32,507.89 crores by 2021-22.
SCSS provides an attractive interest rate to senior citizen depositors. If used wisely, this scheme can help in getting a regular monthly income from depositors. The SCSS scheme. The SCSS interest rate is revised every quarter. For the last few quarters, the interest rates on SCSS deposits have remained unchanged.
|Year||Gross Deposit (in crores)|
Here are five features that make SCSS attractive for senior citizens:
High-Interest Rate: This savings scheme for senior citizens is currently offering 7.4% annual interest, which is better than fixed deposits and Public Provident Fund (PPF) offered by banks and the post office.
Quarterly Payment: Senior citizens can get quarterly payments by investing in this scheme. At the current interest rate of 7.4% per annum, Rs 185 can be earned on a deposit of Rs 10,000 per quarter. According to the Post Office website, the interest is payable from the date of deposit of 31st March/30th Sept/31st December in the first instance and thereafter on 31st March, 30th June, 30th Sept and 31st December.
High Investment Limit: The maximum deposit a senior citizen can make in SCSS is Rs 15 lakh. The minimum deposit that can be made is Rs 1000.
Tax Benefit: Interest earned up to Rs 50,000 in a financial year from SCSS deposit is tax-free. If the total interest in the SCSS account exceeds Rs 50,000 in a year then it becomes taxable and TDS is deducted from the total interest paid at the prescribed rate. No TDS is deducted if the SCSS account holder has submitted form 15G/15H and the accrued interest is not more than Rs 50,000 in a year.
Auto Credit: Senior citizens don’t have to visit the post office to claim earned interest. It can be drawn through auto credit into their savings account standing at the same post office.
Senior Citizens can open the SCSS account in post office to enjoy the benefit of the scheme.