In people’s lifetime, they will be in a position to retire at some point in life and it becomes very vital to make sure that they have steady inflow of income. In particular, it is possible to note the existence of the senior citizen savings scheme which is ideal for elderly people.
This is a sponsored program by the government and provides better interest rates compared to other savings instruments, and helps retirees to have a regular income in terms of monthly paycheck. This beneficial scheme is something you would definitely need to know about, and below you can find all the necessary information.
Liquid investment with high returns
Senior citizen of India should look to invest in the Senior Citizen Savings Scheme to protect their future. The scheme has an entry investment amount as low as ₹ 1000 & is an ideal money management product post retirement. The scheme has a 5 years term but can be rolled over, so you are guaranteed a steady stream of income for many years.
Eligibility and Account Opening
The SCSS identifies certain requirements that are must-have for an individual to qualify for the program and one of them is that you must be of sixty years old. However, employees who have taken VRS and are in the age group of 55 and 60 years are also allowed to open an account.
Like in the case of the life scheme, retired defense personnel can benefit from this scheme once they reach the age of fifty. It is convenient as accounts can be opened by including a spouse, thus appropriate for many people.
Attractive Interest Rates
Another factor that makes the SCSS rather appealing is the decent interest rate offered for the scheme. Today the scheme has an interest rate of 8. 2% per annum.
For instance, if you invest ₹300000 which is the maximum permissible limit you will get an interest of ₹246000 per year which roughly sums up to ₹20000 per month. Thus, the SCSS is perfect for those who require income on a frequent and stable basis.
Conclusion
Senior citizen savings scheme is proved to be potential source of income security to the retired persons and hence it would be act as financial instruments to such class of persons.
Credited with competitive and progressive interest rates, no minimum deposit required, and easy account handling, it contributes towards enduring financial solutions and security. If you are a senior citizen or planning to retire early, it is wise to invest in the SCSS whereby you earn a steady and regular income hence being financially independent.
