Retired senior citizens solely depend on Fixed Deposits or FDs for running their house. However, we are living in an unprecedented time where an unexpected pandemic has created havoc in our lives. To be in a safety net, it is important to have a scheme that gives assured returns and with central banks cutting interest rates to fight the recession, there is an attractive investment option for elders in our family called the Senior Citizens Savings Scheme.
Senior Citizens Saving Scheme (SCSS) is a government-backed retirement benefits scheme that allows elderly people in India to deposit a large amount of money in the programme and therefore, get regular income. The scheme provides an annual return rate of 7.4 percent.
To be eligible to invest in such a scheme, the person should have attained an age of more than 60 years. However, there is one exception too as those who are aged between 55 years and 60 years can also create accounts under this plan if they have chosen voluntary retirement. This scheme is also up for use by retired military members who are more than the age of 50.
In terms of investing in that scheme, a minimum amount of Rs 1,000 is needed to open an account and the maximum can go up to Rs 15 lakh. The deposited amount must be in the multiples of Rs 1,000 and there are options of creating joint accounts too in the scheme.
In terms of returns, the Senior Citizens Savings Scheme gives the highest rate of interest at 7.4% and it is paid on the first business day of April, July, October, and January, each year.
The accounts made under the Senior Citizens Savings Scheme come with a five-year limit and it can be further extended for additional three years.