Any citizen above 60 years of age can open SCSS account. At the time of opening the account, cash needs to be deposited in multiples of Rs 1000 and may deposit as much as a most of Rs 15 lakh. There might be an annual revenue of two lakhs in a joint account.
Senior Citizen Savings Scheme
Senior Citizen Savings Scheme ie ACSS is the very best scheme run for senior residents. In this scheme, curiosity is being given on the fee of seven.4 % at current, which is greater than the retail inflation. If we see the identical factor concerning the rate of interest of the financial savings account, then it’s a lot lower than the retail inflation. Where retail inflation is 7 %, then the curiosity on the financial savings account begins from 2.5-3 % and goes as much as six-and-a-half %. Accordingly, Senior Citizen Savings Scheme is an excellent deposit scheme when it comes to inflation. One of its particular options is that this scheme provides assured returns to senior residents after retirement. According to this, this scheme run within the submit workplace goes to present advantages in some ways.
Senior Citizen Savings Scheme or SCSS is a authorities backed scheme which is with none danger and might be simply run within the submit workplace. This scheme provides assured returns to the retired folks and by investing on this scheme, a senior citizen can earn greater than Rs 2 lakh yearly. Let’s learn the way.
15 lakh deposit for 1-5 years
Any citizen above 60 years of age can open the SCSS scheme. At the time of opening the account, cash needs to be deposited in multiples of Rs 1000 and the utmost quantity that may be deposited is Rs 15 lakh. The lock in interval of this scheme is 5 years. Let us see, in keeping with the present 7.4 %, if an individual invests Rs 15 lakh in SCSS for five years, then how a lot return will he get.
2. Interest each quarter Rs.27750
On depositing Rs 15 lakh, curiosity of Rs 27,750 will probably be out there each quarter on the fee of seven.4 % curiosity. Similarly, annual curiosity will probably be Rs 111,000. In this manner, on maturity of the account, the account holder will get a complete of Rs 5,55,000 as curiosity. The SCSS account earns curiosity each quarter and its charges are relevant on 31 March, 30 June, 30 September and 31 December yearly. Whatever is the rate of interest of the scheme on the day of account opening, the identical fee turns into relevant for the subsequent 5 years.
3-Advantage of joint deposit
The Senior Citizen Savings Scheme additionally presents the choice of opening a joint deposit or a joint account. In this manner a senior citizen can open this account together with his spouse. In case of a joint account, the mixed deposit quantity of husband and spouse will probably be Rs.30 lakh (15 lakh per depositor). In this manner, each these depositors will get 111,000 instances 2 i.e. Rs 222,000 within the 12 months. Above we now have defined {that a} depositor will get an curiosity of Rs 111,000 in a 12 months. In this manner, if the husband and spouse collectively make investments Rs 15 lakh every within the Senior Citizen Scheme, they’ll simply earn Rs 222,000 per 12 months. If the senior citizen husband and spouse wish to withdraw their cash on maturity, then they’ll get Rs 41,10,000.
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