Why You Must Opt For Senior Citizen Saving Scheme (SCSS)?

Senior citizen savings scheme (SCSS) a variant of Fixed Deposit can be booked to avail short-term benefits. These were started in 2004 and considered reliable scheme for covering immediate financial goals. They ensure continuous and guaranteed income flow to senior citizens making them independent and self-sufficient.

#1

Seniors can book a SCSS account if they are 60 years of age. The account can even be booked between 55-60 years of age on superannuation or when retired due to other reasons.

However, if as an investor you are looking for a scheme with both Short or Long-term Fixed Deposit from reputed NBFCs benefits you can consider. These are low-risk, high-return investment, duly rated by ICRA’s MAAA (stable) rating and CRISIL’s FAAA/ Stable rating.

#2

You can invest up to Rs. 15 lakhs. Senior citizen Fixed Deposit comes with a lock-in period of 5 years which can be extended to another 3 years on renewal.

#3

Lenders provide interest at the end of each quarter up to 8.60% and this helps to gradually accumulate wealth.

#4

Upon maturity interest is provided as applicable in Post Office Savings Accounts thus helping you grow your corpus.

#5

Financial institution will charge up to 1-1.5% on premature account closure which is less than 2 years but more than a year.

It is wise to talk to you lender at the time of booking so you can better understand their terms and take informed decisions.

For more details read this: https://www.minds.com/aditiahuja/blog/everything-you-need-to-know-about-senior-citizens-saving-sch-858277482220163072