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Benefits Of Senior Citizen Savings Scheme : Highest Interest Rate?

The Senior Citizen Savings Scheme (SCSS) is one of the highest beneficial investment tools for senior citizens, which is an assured investment option offered by the union government of India.
Kuntala Sarkar
Interest rate
The interest rate at 7.4% paid on it is one of the highest rates offered by the government, which is also higher than many FD interest rates.
Deposits
In SCSS, one can invest in multiple of Rs. 1000. The maximum deposit amount is Rs. 15 lakh. As it is a senior citizen scheme, investors should be above 60 years old.
Age
But retired civilian employees above 55 years of age and below 60 years, and retired defense employees above 50 years of age and below 60 years can also apply.
Maturity period
As the maturity period is 5 years, so one can close the account after 5 years completed. Then, one can again apply to renew another account under the scheme.
Premature closure
If you close the account after 1 year but before 2 years from the date of opening, an amount equal to 1.5% will be deducted from the principal amount.
Account closure
If you close the account after 2 years but before 5 years from the date of opening, an amount equal to 1% will be deducted from the principal amount.
Tax
The investment under this scheme qualifies for the benefit of section 80C of the Income Tax Act, 1961.