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News18
6 days ago
- Business
- News18
SCSS To Post Office Savings: Investment Schemes For Senior Citizens To Build Emergency Fund
Last Updated: Whether it's a sudden medical expense or any unplanned big-ticket spending, an emergency fund could help to meet such unexpected financial needs. Life is full of surprises, and emergencies can occur when we least expect them. Just when you believe you have everything under control, life throws a curveball at you. This is why building an emergency fund is crucial for financial stability at any age, especially for senior citizens. Whether it's a sudden medical expense or a family emergency, having a financial safety net can bring peace of mind and reduce stress. An emergency fund is a dedicated pool of money set aside to take care of unexpected expenses, guarding you against potential debt. It allows you to cover unforeseen expenses without resorting to high-interest loans or going into debt. Having this financial cushion will also make sure that you don't borrow money and be stressed with its accompanying interest payments. National Pension Scheme (NPS) It is a government-backed savings plan scheme for senior citizens. The National Pension Scheme provides financial security and a regular income to secure their future post-retirement. If needed, the scheme allows limited, tax-free withdrawals for specific needs like medical expenses. This scheme also offers tax benefits under Section 80C of the Income Tax Act, 1961, and an additional Rs 50,000 under Section 80CCD (1B). SCSS offers a secure, risk-free way for retirees to manage savings while earning interest, often at higher rates than standard savings accounts. Specially tailored for individuals aged 60 and above, this government-backed scheme offers secure returns. Currently, the government offers an 8.2% interest rate per annum under the SCSA scheme. Post Office Monthly Income Scheme (POMIS) The next savings plan you can consider is the Monthly Income Scheme by the post office. It is a reliable savings plan for senior citizens, providing a fixed income to investors every month. In this government-backed scheme, the investors can put a lump sum amount, and every month it pays 7.4 percent interest on the amount invested. After five years, the scheme matures and individuals can withdraw or reinvest the principal amount. RBI Bonds Another investment option, backed by the Indian government, that you can consider is RBI bonds. It offers a fixed interest rate of 8.05 percent per annum, paid semi-annually, ensuring regular income. With a lock-in period of 7 years, the scheme allows senior citizens to withdraw the money after 4 years. Equity Linked Savings Scheme (ELSS) Designed with equity exposure, it is a mutual fund that helps investors accumulate wealth while saving on taxes. This scheme has the shortest lock-in period among tax-saving investments, making it the most preferred during emergencies. Moreover, it offers tax benefits within the overall Rs 1.5 lakh per annum limit under Section 80C. view comments First Published: July 25, 2025, 19:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
7 days ago
- Business
- News18
From PPF to SCSS: 5 Government Savings Schemes That Secure Your Future
Last Updated: With rising inflation and uncertain markets, individuals are advised to turn to low-risk, government-supported savings plans for financial stability. As more Indians seek low-risk ways to grow their savings, government-backed schemes have become a cornerstone of sound financial planning. Backed by the Government of India, these schemes offer assured returns, tax benefits and much-needed peace of mind, making them ideal for conservative investors, senior citizens and first-time savers. In today's unpredictable market, government-backed instruments are valuable for long-term goals like retirement planning, child education and wealth preservation. Popular schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS) and the Sukanya Samriddhi Yojana not only offer attractive interest rates but also come with tax-saving benefits under Section 80C of the Income Tax Act. If you are also planning or looking for government-backed savings schemes, here are five reliable options worth considering: Public Provident Fund (PPF) Ideal for long-term wealth creation, this government-backed savings scheme offers a current interest rate of 7.1 percent per annum, with a 15-year lock-in period. Contributions up to Rs 1.5 lakh per year qualify for tax deductions under Section 80C, and the interest earned is completely tax-free. Amazing, isn't it? If interested, you can start a PPF with a minimum annual investment of Rs 500 to Rs 1.5 lakh. With a 5-year tenure and an interest rate of 7.7 percent, the NSC is suitable for risk-averse investors. It also offers tax benefits under Section 80C on investments of up to Rs 1.5 lakh, making it a popular choice for small savers. To start this scheme, a minimum deposit of Rs 1000 is required and thereafter in multiples of Rs 100. Senior Citizens Savings Scheme (SCSS) Tailored for individuals aged 60 and above, SCSS offers one of the highest interest rates among government schemes at 8.2 percent per annum, payable quarterly. It has a five-year tenure (extendable by three years) and is ideal for retirees seeking regular income. The Senior Citizens Savings Scheme allows only one deposit. The minimum investment is Rs 1,000, and the maximum is up to Rs 30 lakh. Sukanya Samriddhi Yojana (SSY) Another government-backed saving scheme you can consider is Sukanya Samriddhi Yojana. Designed to secure the future of the girl child, Prime Minister Narendra Modi launched the scheme that offers an attractive 8.2 percent interest rate and tax-free returns. Parents can open the account any time before the girl turns 10, with partial withdrawals allowed for education and full maturity benefits after 21 years. Atal Pension Yojana (APY) Aimed at providing a fixed monthly pension to workers in the unorganised sector, the APY scheme offers a monthly pension from Rs 1,000 to Rs 5,000 upon attaining the age of 60. The scheme, named after the former Prime Minister of India, Atal Bihari Vajpayee, encourages individuals to save for their retirement systematically. Those individuals who are within the age group of 18-40 years are eligible to apply for the scheme. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
24-07-2025
- Business
- News18
Senior Citizen Savings Scheme VS Public Provident Fund: Key Differences
Last Updated: Differences Between Senior Citizen Savings Scheme and PPF, Senior Citizen Savings Scheme, Public Provident Fund, SCSS Benefits, PPF Features Senior Citizen Savings Scheme (SCSS) and Public Provident Fund (PPF) are both popular money-saving and investment tools used by Indian citizens for stability and future financial goals. It is common for salaried employees and those seeking retirement welfare to safeguard their money in these two schemes because of the range of benefits they come with, catering to a wider section of society. While diversifying your investment portfolio with both PPF and SCSS can be beneficial, what if you had to choose one of the two schemes? Here are the key differentials for you to understand. The goal with investments in the Public Provident Fund is to accumulate wealth and build a significant retirement corpus. With the Senior Citizen Savings Scheme, those nearing the end of their professional life can get a regular income stream. While the PPF is open for all Indian citizens, the SCSS is specifically designed for senior citizens aged 60 years and above. Investment Tenure Public Provident Fund investments are fixed over a tenure of 15 years that you can extend in blocks of up to five years. On the other hand, the Senior Citizen Savings Scheme has an initial tenure of five years, which can be stretched for an additional period of 3 years. The interest rate on PPF investment currently stands at 7.1 per cent per annum, compounded annually. The Indian government reviews the interest rates on PPF every quarter. SCSS offer a higher return of 8.2 per cent annually, which is also subject to periodic revisions. Tax Benefits Investments in the PPF scheme up to a maximum limit of Rs 1.5 lakhs per financial year are eligible for tax deductions under the Indian government's Income Tax Act Section 80C. Both the interest earned and maturity amount are tax-exempt, giving it an edge over the SCSS. While contributions to the Senior Citizen Savings Scheme also fall under the Income Tax Act benefit, the deductions are subject to the overall limit and the interest earned is taxable. Minimum Investment and Withdrawal The maximum PPF investment may be Rs 1.5 lakhs, but you can start a PPF account with a minimum sum of Rs 500. The minimum deposit required for the SCSS scheme is Rs 1,000, with a maximum limit of Rs 30 lakhs. Withdrawals are allowed under both the schemes. Investors can make partial withdrawals from the 7th year onwards under PPF, subject to certain conditions. Full withdrawals are only allowed upon maturity. You can make premature withdrawals from SCSS upon completion of one year with due penalties deducted. view comments First Published: July 24, 2025, 09:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
22-07-2025
- Business
- News18
How To Start A Senior Citizen Savings Account: Step-By-Step Guide
Launched by the Government of India in 2004, the scheme allows a maximum deposit of Rs 30 lakh. As individuals grow older, securing financial stability becomes more important than ever. One dependable way to safeguard your future is by investing in the Senior Citizens Savings Scheme (SCSS), a government-backed savings option designed specifically for those aged 60 and above. More than just a regular bank account, SCSS acts as a financial safety net during your retirement years, offering higher interest rates, exclusive banking benefits, and the peace of mind that comes with stable returns. Launched by the Government of India in 2004, the scheme allows a maximum deposit of Rs 30 lakh, with an initial tenure of 5 years, extendable by an additional 3 years upon maturity. Early retirees aged 55 to 59 who have opted for Voluntary Retirement Scheme (VRS) or superannuation, as well as retired defence personnel aged 50 to 59, are also eligible to open a Senior Citizens Savings Scheme (SCSS) account. Accounts can be opened individually or jointly with a spouse, with deposits capped at Rs 30 lakh per individual. You can open an SCSS account at any post office or at authorised public and private sector banks across India. Step 4: Complete the application form and submit the required documents. Step 5: Deposit the minimum required amount, usually ranging from Rs 500 to Rs 5,000 depending on the bank. Step 6: Once the account is opened, enjoy benefits like higher interest rates, priority service, free chequebooks, and more. Senior Citizen Saving Scheme: Documents required Two passport-size photographs A PAN card is mandatory. ID proof (Aadhaar card, passport, driving license issued by the Regional Transport Authority, voter ID card, and job card issued by NREGA, signed by the state government officer) Proof of address, such as electricity bills or telephone bills. Age proof, like a birth certificate or senior citizen card. If the investor is less than 60 years old, he/she will require a certificate from the employer indicating the details of retirement on superannuation or otherwise, employment held, retirement benefits, and the period of such employment with the employer. First Published: July 22, 2025, 10:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
19-07-2025
- Business
- News18
Post Office Senior Citizen Savings Scheme: Invest Once, Get Guaranteed Rs 20,000 Every Month
Last Updated: A lump sum investment of Rs 30 lakh in SCSS gives an annual return of approximately Rs 2.46 lakh, which translates to around Rs 20,500 per month The post office near your home is not just a place to send letters, it also offers safe and reliable investment options. One such scheme is the Senior Citizen Savings Scheme (SCSS), which is backed by a government guarantee. This scheme offers an attractive interest rate of 8.2% per annum, making it a better option than most bank fixed deposits. SCSS is especially beneficial for retirees looking for regular monthly income. You can start investing in SCSS with just Rs 1,000, and the maximum investment limit is Rs 30 lakh. An added advantage is tax savings under Section 80C, offering deductions of up to Rs 1.5 lakh annually. Any individual aged 60 years or above can invest in SCSS. Civil employees who have taken voluntary retirement between 55 to 60 years, and retired defence personnel between 50 to 60 years, are also eligible. A joint account can be opened with a spouse. The scheme runs for five years, with the option to extend it for another three years. However, if the account is closed within one year, no interest is paid. If closed between two and five years, the interest amount is reduced by 1% as a penalty. A slightly higher penalty applies for closure before two years. For example, if someone invests Rs 20 lakh, the maturity amount in five years at 8.2% interest will be Rs 28.2 lakh. This includes a quarterly interest payout of about Rs 41,000, totalling Rs 8.2 lakh in five years. It provides a monthly income of roughly Rs 13,666. SCSS stands out as a secure and stable financial plan for senior citizens. It not only offers excellent returns and tax benefits but also comes with the trust of a government guarantee. For those looking to secure a steady income post-retirement, this scheme is a dependable choice. Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
