The Senior Citizens Savings Scheme (SCSS) is primarily for the senior citizens of India. The scheme offers a regular stream of income with the highest of safety and tax saving benefits. It is an apt choice of investment for those over 60 years of age.
What is the current rate of interest in SCSS?
For example, if he decides to invest Rs. 1 Lakh for 5 years at the current SCSS interest rate, the total maturity amount will be Rs. 1.43 Lakh.
Historical Trends of SCSS Interest Rates.
|Timeline (FY)||SCSS Interest Rate|
What is SCSS in post office?
Senior Citizen Saving Scheme (SCSS) is a post office saving scheme for senior citizens above the age of 60 years.
How does senior citizen savings scheme work?
SCSS is one of the most beneficial investment options for senior citizens, given its security of capital, high returns, and also the tax benefit it attracts. The principal amount deposited in an SCSS account is eligible for tax deductions under Section 80C of the Income Tax Act, 1961, up to the limit of Rs. 1.5 Lakh.
Can I invest every year in SCSS?
SCSS has a tenure of five years. However, one can extend their investment in the scheme for another three years. Also, the interest rate for the extended tenure would be at the prevailing rate. For the extension of the scheme tenure, the investor has to submit a form.
Can I get monthly interest on SCSS?
The interest rate on SCSS is currently 7.4% (as of Q1 FY 20-21). Assuming that you have deposited Rs. 15 lakh (the maximum amount permitted) in SCSS, the maturity value at the end of the 5-year tenure will be: 5 year investment= Rs.
Is SCSS or Pmvvy better?
For PMVVY investors, no tax benefits are eligible. But tax benefit under Section 80C is available for the contribution made to SCSS. Interest income earned from both PMVVY and SCSS is fully taxable according to the tax slabs of the senior citizen and under the category of ‘Income from Other Sources’.
Can 15H be submitted in SCSS?
I have also FDRs of Rs 10L and bank will deduct TDS on this.My tax liabilities are met out on SCSS deductions itself then can I submit my 15 H with my bank or not ? thanking you. Interest on bank fixed deposit is taxable income. By giving a Form 15H, it does not become exempt.
Can I invest in both SCSS and Pmvvy?
Under both SCSS and PMVVY you can invest up to a limit of Rs 15 lakh individually or jointly. Both the Senior Citizen Savings Scheme and PMVVY can be taken into consideration.
Can I open SCSS account in HDFC Bank?
With HDFC Bank InstaAccount open a Savings Account instantly in a few simple steps. It comes pre-enabled with HDFC Bank NetBanking & MobileBanking and you can enjoy Cardless Cash withdrawals.
Can I withdraw money from SCSS?
The amount invested in the scheme also cannot exceed the money one receives on retirement. One can hold more than one account under the scheme. However, the sum of deposits across all SCSS accounts shall not exceed the maximum threshold. … 1% of deposit is deducted if the withdrawal occurs between 2 to 5 years.
Can I transfer my SCSS account from post office to bank?
Transferable. An account holder has the options to make a transfer of this SCSS scheme to a different bank account or a post office of their preference. A transfer form needs to be submitted for the same. The fee for this feature is negligible.
What is the interest rate for senior citizen in post office?
To sum it up, SCSS is a very good scheme for senior citizens who want a decent risk free return on a corpus fund. At 7.4% p.a. interest rate and an investment amount of 15 lakhs, the monthly income is stated to be Rs 10,625 per month for each investor.
Can SCSS be closed prematurely?
Is premature withdrawal of the deposits from the accounts under the SCSS, 2004 permitted? Yes, premature withdrawals are allowed, although a premature closure of the savings account is permitted only after a year, whereby the account holder will be charged 1.5% of the savings and 1% after two years.
Can husband and wife both invest in SCSS?
Ans: Yes, one can open a joint SCSS account with his/her spouse only and the maximum amount that can be invested in it is Rs. 15lakhs only.
Which bank gives highest interest rate for senior citizens?
Bank FD Interest Rates in India – Regular & Senior Citizen Rates
|Bank||FD Interest Rate for General Citizens||Senior Citizen FD Interest Rates|
|SBI||2.90% – 5.40%||3.40% – 6.20%|
|ICICI Bank||2.50% – 5.50%||3.00% – 6.30%|
|HDFC Bank||2.50% – 5.50%||3.00% – 6.25%|
|Axis Bank||2.50% – 5.50%||2.50% – 6.05%|