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Whatever savings senior citizens have, they do not want to take any kind of risk on it. Therefore, they prefer to invest their savings in fixed deposits, where they can get guaranteed interest and their money is also safe. But if you want to deposit money in fixed deposit for a long period, then SCSS i.e. Senior Citizens Saving Scheme can be a better option. In this scheme, interest is being given at the rate of 8.2 percent. Know about the benefits of this Senior Citizen Savings Scheme and the interest available on 5 year FD in major banks-
How much amount can be deposited?
Investing in SCSS can start from Rs 1000. The maximum deposit limit is Rs 30 lakh. The amount in the scheme is deposited in multiples of 1000. Its maturity period is 5 years. If the depositor wishes, he can extend the tenure of the account up to three years after maturity of the deposit. It can be extended within 1 year of maturity. Interest on the extended account will be at the rate applicable on the date of maturity.
Age relaxation for defense retirees
Any person who is 60 years of age or above can earn profits by investing in this scheme. Civil sector government employees taking VRS and defense retirees are given age relaxation with certain conditions. This account can be opened single or joint account with spouse. The benefit of tax exemption under section 80C is available in SCSS.
Know how much profit you will get on how much investment
If you invest Rs 1 lakh in this scheme, then after 5 years you will get a total of Rs 1,41,000. By investing Rs 2 lakh you will get Rs 2,82,000, by investing Rs 5 lakh you will get Rs 7,05,000. On depositing Rs 10 lakh you will get Rs 14,10,000. On depositing Rs 20 lakh you will get Rs 28,20,000 and on depositing Rs 30 lakh you will get Rs 42,30,000.
How much interest can senior citizens get on 5 year FD in banks?
SBI: 7.25%
PNB: 7:00%
HDFC: 7:50%
ICICI: 7:50%
Axis: 7:60%