Senior Citizen Savings Scheme: Answering all your queries

This financial year, the interest rate for small saving schemes (SSS) was increased from 7.6 per cent in December 2022, to 8 per cent in Jan 2023; and finally to 8.2 per cent in April 2023. Senior Citizen Savings Scheme (SCSS)​​ stood out with the highest return. No wonder, it is now a very lucrative option for senior citizens or anyone who wants to help their parents or elderly relatives manage their money. So, here we have answered all the questions regarding this scheme. Why invest in SCSS SCSS gives you multiple benefits. It's a government scheme. Hence it is safe. It has the highest return rate at 8.2 per cent, across small savings schemes (refer to the table for a list of schemes and their returns). SCSS provides tax benefits (under Section 80C) on investment amount up to Rs 1.5 lakh. The upper investment limit per person is now Rs 30 lakh. This means if you and your spouse are both senior citizens, you can invest up to Rs 60 lakh in total by opening two separate accounts in your and your spouse's name respectively. Am I eligible You are eligible if you fulfil one of the given conditions. A senior citizen (above 60 years of age). Younger than 60, but investing jointly with a spouse who is a senior citizen. A retired civilian employee (55 to 60 years of age) or a retired defence employee (50 to 60 years of age) as long as you invest within 1 month of receiving retirement benefits. Can I open a joint account Yes, you can open a joint account but only with a spouse. At least one of you has to be over 60 to be eligible for the scheme. Whoever is

This article was originally published on May 12, 2023.