Senior Citizens Savings Scheme- How to Earn 24 Lakhs in 5 Years

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The Senior Citizens Savings Scheme (SCSS) is a popular government-backed investment option tailored for individuals above the age of 60. It offers a safe way for retirees to grow their savings with attractive returns and minimal risk. Here’s how retirees can earn ₹24 lakh in 5 years through the SCSS:

Key Features of the SCSS:

  1. Interest Rate: The SCSS offers an interest rate of around 8% to 9% per annum (subject to changes by the government).
  2. Investment Limit: A single senior citizen can invest up to ₹15 lakh in the scheme, while a couple can invest up to ₹30 lakh.
  3. Tenure: The scheme has a maturity period of 5 years, which can be extended by an additional 3 years after the initial tenure.
  4. Interest Payout: Interest can be received quarterly, which is useful for retirees seeking regular income.
  5. Tax Benefits: The SCSS qualifies for tax deduction under Section 80C of the Income Tax Act, making it a tax-efficient investment.

Earning ₹24 Lakh in 5 Years:

To reach ₹24 lakh in 5 years, consider the following:

  • Initial Investment: Let’s assume an investment of ₹15 lakh, which is the maximum allowed for an individual.
  • Annual Interest Income: At an 8% annual interest rate, ₹15 lakh will generate an annual interest income of ₹1.2 lakh.
  • Interest Over 5 Years: Over the five-year term, you would earn ₹6 lakh in interest. However, if you reinvest the interest at regular intervals, you can accumulate additional earnings.
  • Extended Investment: If the SCSS is renewed for a 3-year term after the initial 5 years, the interest accumulation continues, helping you surpass ₹24 lakh, depending on interest rate variations and reinvestment strategies.

This simple, low-risk scheme can be an excellent tool for retirees to ensure steady income while safeguarding their principal investment.

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