Senior Citizens Savings Scheme: High Returns and Safety for Your Retirement Fund:

Senior Citizens Savings Scheme: Most of the elderly retire with a lot of savings and wish to invest them in securities that offer high interest and provide absolute security. That is the main reason that most of the senior citizens prefer to put their money in Fixed Deposits.This motivates them to invest by offering an additional .50 percent elderly interest for senior citizens.

Aside from FD, senior citizens should also consider investing in Senior Citizen Savings Scheme. In comparison to Bank Fixed Deposits, the interest rates for this investment scheme are considerably better. By investing in this scheme for 5 years, senior citizens are able to get in excess of Rs 6 lakh in interest.Also the tax exemption SCSS gives is noteworthy

Currently SCSS is providing 8.2% interest. It allows senior citizens an investment of up to 30,00,000 INR with a minimum limit of 1000 INR. Interest payment is done quarterly in this scheme. This scheme matures in five years. You can take advantage of this scheme even after 5 years, you can mature your deposit amount, but you can extend your account for an additional three years. It can be done within 1 year after maturity. The matured amount is put in an extended account which earns interest at the rate in force at the time of maturity. SCSS also gives the benefit of tax exemption under 80C.

This way, you can earn in excess of 12 lacs with interest

This is a good option if you're looking for rapid growth in deposit capitals. At an interest of 8.2%, if you put 30 lakh rupees in the scheme, you'll make over 12,30,000 rupees in interest. In this case receiving quarterly payments of 61,500 rupees will result in the initial deposit increasing from 30 lacks to 42,30,000 at the end of five years.

Alternatively, if you invest 15 lakh rupees for 5 years with the existing rate of interest at 8.2 percent, it will fetch you more than 6,15,000 in 5 years as interested income. If this amount is calculated on a quarterly basis, this translates to 30,750 rupees per quarter. Therefore, on maturity this scheme pays a total of 21,15,000 which consists of 15,00,000 principal along with 6,15,000 interest.

Scheme for Investment for Person Above 60 Years of Age

The Senior Citizen Savings Scheme is a fixed deposit scheme. As the name suggests, any individual who is 60 years or above can invest. Additionally, civil sector government employees taking VRS and defense personnel who are retiring do enjoy some relaxation on the age limit under certain conditions.