An 8% rate of interest option is available in the Senior Citizen Saving Scheme. It is a very good fixed income investment option for Senior citizens who are of more than 60 years of age and looking for regular flow of Income post retirement.
An individual may choose to open their Senior Citizen Saving Scheme with banks like ICICI Bank, State Bank of India, IDBI Bank, Canara Bank , Punjab national bank, Bank of Baroda, Union bank
The minimum investment in this option is 1000 and maximum which is allowed per investor is 15 lakhs.
The time period for holding this option is 5 years and on maturity it can be extended for another 3 years.
The interest which is earned on these deposits is taxable as per the provisions of interest income. The interest is paid on Quarterly basis under this scheme.
The premature withdrawal option under SCSS is allowed only after one year and that too comes with certain penal charge of 1.50% and after completion of 2 years the penal charge is 1% of the total amount deposited.
The Current rate of Interest for SCSS scheme is 8%. It is decided on a quarterly basis by Government basis the repo rate prevalent in the economy, the inflation and fixed deposit rate offered by various banks. Next reset will happen on March 31 2023 by the Government of India.
In case you have more queries in regards to the Senior Citizen Saving Scheme you may contact us or may click on the link below and see the frequently asked questions on SCSS.
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