SCSS becomes more attractive. Here's what retirees should do

The interest rate for senior citizen savings schemes (SCSS) increased from 7.6 per cent to 8 per cent recently, which is good news for the retired on the lookout for assured returns. SCSS is eligible for everyone above 60. People between 55 and 59 can also put their money in SCSS, provided they have retired voluntarily or with superannuation benefits. The maximum amount you can invest is Rs 15 lakh. It can go up to Rs 30 lakh if you jointly own the account with your spouse. A risk-free scheme because the government backs it, SCSS provides a fixed income every three months - on the first working day of April, July, October and January. This gives retirees a regular flow of income. This scheme also has a five-year lock-in, but that shouldn't alarm you, as your main objective is to remain invested in SCSS for the duration of your retirement years. In fact, you can choose to extend the lock-in period for a further three years. The only drawback is that the interest earned is taxed as per your tax slab. And if the interest earned is above Rs 50,000 per annum, tax is deducted at source (TDS) itself. What you should do SCSS is a better option than fixed deposit (FD). Visit a post office or a public/private bank to open an SCSS account. We recommend you inv