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How to invest beyond Rs 15 lakh in SCSS?

Read to know the way to invest more than the maximum amount in Senior Citizen Savings Scheme

How to invest beyond Rs 15 lakh in SCSS?

The Senior Citizen Savings Scheme (SCSS) is a risk-free government-backed scheme. It offers a guaranteed return to retirees. While its rate of interest gets revised every quarter, the rate of interest as applicable on the day of deposit gets locked in for the entire tenure of five years. So anyone investing right now would continue to get a guaranteed return of 7.60 per cent for the next five years. This makes it quite an attractive proposition for retirees looking for regular and guaranteed income from their investments to support their living expenses.

However, the only downside to SCSS is that it doesn't allow investing more than Rs 15 lakh per individual. Wondering if there is a way to invest more?

The SCSS account can be held jointly with your spouse. The per individual limit of Rs 15 lakh is applicable for the holder. As the entire investment in an SCSS account is attributable to the first holder, another SCSS account can be opened by your spouse. So you can invest along with your spouse and invest up to Rs 30 lakh. But do ensure that your spouse meets the eligibility criteria for investing in SCSS. For most, investment in SCSS is allowed only after the age of 60. However, retired civilian and defence employees can invest in it before the age of 60, subject to certain conditions.

That way, you and your spouse can both have one SCSS account each with the other person as the second joint holder. For example, the husband and wife can open two joint SCSS accounts each. In one account, the husband can be the first holder and add his wife as the second holder. In the other joint SCSS account, the wife can be the first holder with the husband as the second holder.

The couple can invest a total of Rs 30 lakh instead of just Rs 15 lakh. They can receive a total guaranteed income of Rs 2.28 lakh yearly, instead of just Rs 1.14 lakh at an interest rate of 7.60 per cent. This is how you and your spouse can invest up to Rs 30 lakh in two jointly-held SCSS accounts.

Suggested read:

Can a new SCSS account be opened after the completion of the maturity period?

Is a tax benefit available for opening a new SCSS account?

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