Retirement brings with itself several complications and doubts, but there are savings products that are safe and ensure guaranteed retirement income. The Senior Citizen Savings Scheme (SCSS), launched in 2004 is a deposit scheme introduced by the government of India to provide guaranteed returns to senior citizens through a safe investment. This scheme ensures a regular income stream for senior citizens in retirement.
Eligibility:
1)An individual who has attained the age of 60 years and above on the date of opening of an account who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account.
2)who has retired at any time before the commencement of these rules and attained the age of 55 years or more on the date of opening of an account,
3)The retired personnel of Defence Services (excluding civilian Defence employees) irrespective of the above age limits subject to fulfilment of other specified conditions.
Investments
Minimum: Rs 1,000
Maximum Rs 15 lakh
Deposits have to be in multiples of Rs 1,000
Mode of Deposit:
The deposit under these rules may be made:
1)cash, if the amount of deposit is less than Rupees One lakh.
2)By cheque or demand draft drawn in favour of the depositor and endorsed in favour of the deposit office.
Interest on Deposit:
The deposit made under these rules shall bear interest @ 8.60% p.a. from the date of deposit payable at the end of each calendar quarter e.g. 31st March / 30th June / 30th September / 31st December. Compounding of interest not permissible.
Tenure
The tenure of the deposit is 5 years and can be further extended by 3 years.
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