Senior Citizen Savings Scheme (SCSS) is a popular scheme of the post office. This scheme is specially designed for senior citizens and only individuals above 60 years of age can invest in it. There are many advantages of investing in it, but there are some disadvantages too, which we should know before investing.
Interest rate on Senior Citizen Savings Scheme
According to the interest rate decided by the government for April-June, banks and post offices are paying 8.2 percent interest on SCSS. Once invested, the interest rate remains the same till maturity.
Senior Citizen Savings Scheme Investment Limit
Investment in Senior Citizen Savings Scheme comes with limits. One cannot invest more than a limit in this. Its investment limit has been increased to Rs 30 lakh in Budget 2023, which was earlier Rs 15 lakh.
TDS on SCSS interest
If the interest earned on SCSS exceeds Rs 50,000 during a financial year, you have to pay TDS.
Benefit of interest on interest
In SCSS, interest is paid to the investors every quarter. Investors have to claim this interest every quarter. If they do not do so, then no interest is paid on the amount of interest.
Age Limit and Lock-in Period
Only people of 60 years or above can invest in Senior Citizen Savings Scheme. It has a lock-in period of five years. After its completion, you can extend its maturity for the next three years.