Senior Citizen Savings Scheme: Here’s How You Can Calculate Your Returns

For individuals over the age of 60, the Senior Citizen Savings Scheme (SCSS) is a suitable fixed income investment plan. By investing in this scheme senior citizens can generate a steady stream of income after they retire. Because SCSS is a government-backed scheme just like other small saving schemes of post office, it offers quarterly assured returns. To open an SCSS account one can make a minimum contribution of Rs 1,000 up to a limit of Rs.15 lakh. Under section 80C of the Income Tax Act, 1961, the principal amount deposited in SCSS is subject to tax deduction of up to Rs. 1.5 lakh per year. The interest rate on the Senior Citizen Savings Scheme (SCSS) for the first quarter (April-June) of FY 2021-22 is capped at 7.4 percent per annum. The interest is paid to the account holders quarterly under SCSS. Every fiscal year, interest will be credited on the first day of April, July, October, and January. After 5 years from the date of account opening, a Senior Citizen Savings Scheme matures. After the account has matured, the account holder has the option of extending it for another three years. Here's the formula to calculate how much quarterly interest you will get across the maturity period.

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