Benefits and features of Senior Citizen Savings Scheme (SCSS)

When there are no means of earning income at the time of retirement, you can give your savings a good boost with Senior Citizen Savings Scheme (SCSS). Read further to know more about its benefits and features. 

Are you going to retire soon? Retirement is an exciting, as well as an overwhelming phase. You look forward to the golden years spending it peacefully while enjoying your ample time indulging in travel and other activities. This is how a retiree dreams of living a post-retirement life. All of this is possible only if you have financially secured your life by building a retirement corpus. Being above 60 years of age can also be burdensome for some in terms of funds. You may have saved over the working years, but will those funds help to meet the same standard of living that you expect to live post-retirement? The inflation rates, healthcare expenses, and other expenditures are constantly on the rise; the retirement corpus wouldn't suffice at times. You need to have access to regular income.

As a senior citizen, you can still ensure a secure and steady income by investing in SCSS. This is a Government-backed investment plan targeted for people, 60 years and above. This is considered as one of the profitable savings schemes as it offers attractive returns.

Features of SCSS: 

• Any senior citizen can initiate the investment in SCSS with a minimum savings of Rs 1,000 and a maximum of Rs 30 lakh.
• The SCSS interest rate is 8.2% per annum. The rate is revised every quarter, and the final rate is decided considering factors like inflation level, market scenario and others. 
• The tenure of the savings scheme is five years. You can choose to extend the tenure for another three years. You have to submit a request to the bank within one year from the maturity. You can only select to extend the tenure just once.
• You can make a premature withdrawal from SCSS Account after one year of the account opening. 
• If you are opening an SCSS scheme, you are eligible to receive quarterly disbursals. Banks provide interest payments on the 1^st of April, July, October and January. 

Benefits of SCSS: 

• Safe investment option as it an initiative by the Government of India. 
• You can open an SCSS Account at any authorised bank or any post office in India. 
• As compared to Fixed Deposits (FDs), this type of investment option offers substantial returns at the rate of 8.2% per annum.
• You also have tax-saving benefits, wherein you can claim up to Rs 1.5 lakh in a financial year under Section 80C of the Income Tax Act. The interest payments are subject to taxation as per the tax slab rates. Besides, if your interest income exceeds Rs 50,000 in a year, then it is subject to Tax Deducted at Source (TDS).

As a senior citizen, investing in SCSS is a reliable and safe option for you as it keeps your capital secure and offers good returns. It is easy to open the account at ICICI Bank with your ID and address proof documents. 

Terms and Conditions apply.

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.