- 8 DEC 2017
What is Senior Citizens Savings Scheme
Our elderly have worked hard all of their life to give us everything we need to live a happy life. They spend all of their savings to secure a financial future for us. But what about them? What about their expenses after they don’t have a job anymore?
For allowing the senior citizens live their life without a financial burden, the government has come up with many attractive Senior Citizens Savings Scheme as an option for Retirement planning.
What is Senior Citizens Saving Scheme?
Exclusively made for citizens over the age of 60, Senior Citizens Savings Scheme is a government initiative from which the senior citizens can save for long-term. Under this scheme, an account is opened at any of the post offices or certified banks. The account is opened for five years and at the time of maturity can be further extended by three years. A minimum amount of 1000 has to be deposited in the account, and total amount should not exceed 15 lakhs.
The accounts opened under this scheme are safe and includes unique benefits to let the senior citizens save an adequate amount for the coming years and live their future life burden free.
For the senior citizens, this scheme comes with several benefits:
- Reliable: As the government itself sponsors the scheme, it is secure and reliable.
- High Interest: The scheme allows the elderly to save more, with its high interest of 8.60 % per annum.
- Multiple accounts: A person over the age of 60 can open multiple accounts under this scheme.
- Tax benefits: Tax benefits like the option to save TDS if the interest is less than 10,000 are available under section 80C of Income Tax Act, 1961.
- Minimum documentation: The benefits of this scheme are readily available as you just have to fill a form in a certified bank’s branch with only a document that proves your age.
- Premature withdrawal: If a citizen is under an immense financial burden, he/she has the option to terminate the account and access the money even before the maturity.
Anyone can open an account under this scheme if the persons qualify under the given below criteria:
- The person has attained a minimum age of 60 years or above.
- If a person has retired from the job as per VRS/superannuation and has opened an account under the scheme within one month of receiving the retirement benefits, the age must be 55 years or more but less than 60 years.
The Senior Citizen Savings Scheme is an ideal scheme by which a senior citizen can get Retirement insurance and can plan for the future years. It is true that it is always better to buy a Pension plan or a Retirement plan in the early years of life, but certain circumstances don't allow everyone to do so. In cases like these, investing in this scheme can allow you to save with the added benefits of Tax savings and high-interest rates.
- 17 JUL. 2018
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