• Home
  • EPF Balance
  • Activation
  • Help Desk
  • PF claims
  • epf payment

Epfo guidelines

epfo login, epf balance, uan login member portal, pf claim status

Senior Citizen Savings Scheme (SCSS): Eligibility, Interest Rate, Returns Tax Benefits

 

 

Senior Citizen Savings Scheme (SCSS)

Eligibility Individual age above 60 years,  VR -55 age.
Interest rate 7.4* as on 2020
How to pen any Post office or Bank
Investment Limit (only one time/ lump sum) 1000 to 15 Lakhs
Premature withdrawal After 1 year & within 2 years with 1.5% penalty,  after 2 years 1% penalty on interest earned.
Premature closing In case of death only
Maturity / Lock-in Period 5 Years
Extension 3 years
Tax Benefits on investment 1.5 Lakh Every year under 80C,

on return For withdrawal 50,000 under 80 TTB.

 

 

SCSS Interest rates Year wise 2020

changes each quarter.

Period Interest Rate 
Q3 2020 july to sep 7.4%
April to june (2020-21) 7.4%
April to June 2019 (Q1 FY 2019-20)
Jan to March 2019 (Q4 FY 2018-19) 8.7
Oct to Dec 2018 (Q3 FY 2018-19) 8.7
Jul to Sep 2018 (Q2 FY 2018-19) 8.3
Apr to Jun 2018 (Q1 FY 2018-19) 8.3
Jan to March 2018 (Q4 FY 2017-18) 8.3
Oct to Dec 2017 (Q3 FY 2017-18) 8.3
Jul to Sep 2017 (Q2 FY 2017-18) 8.3
Apr to Jun 2017 (Q1 FY 2017-18) 8.4

 

SCSS VS PMVYY VS PO MIS

NO cumulative interest‘, unlike a bank fixed deposit (FD) or NSC (National Saving Certificate). 5 years lockin,

Post Office Monthly Saving Scheme 7.7% Interest payable monthly. lock in period of 5 years.

SCSS Pays Quarterly once

PMVYY:

  • Investment amount same as SCSS but in case of two senior citizens 15*2 = 30 lakhs
  • 10 Years Maturity Period.
  • 75% of loan After 3 years
  • Premature Closing: Only critical illness 98% of the value.
  • Mode of Pensions payment: Monthly/3/6/12 months but SCSS only Payouts Quarterly once in 3 months.
  • Interest rates: Based on pension withdrawals: monthly 8%, Quarterly 8.5%, half year;y 8.15% yearly 8.3% but SCSS only have single Interest rate 8.7%* (Both are monitor & regulates quarterly):
  • No Tax Benefit for PMVYY

 

Senior Citizen saving Scheme calculation

Investment interest rate Quarterly Monthly
5 lakhs 8.7 10875 3625
10 lakhs 8.7 21750 7250
15 lakhs 8.7 32625 10875

 

Interest payable on March, June, September, December end of the month.

How to open the Senior Citizen Saving Account Scheme at the Post Office/bank?

  1. Visit the Post Office with your KYC (ID & Address Proof) Ask them To open SCSS Account,
  2. Pay the Minimum Amount, Then your Account Will be Open, make regular Payments either Monthly Or Annual offline or online.
  3. Don’t forget to deduct this amount if are under the income tax slab.
  4. You should also open Saving Account with Post office.

SCSS Account Opening at the bank:

the same Process applies, but you have already KYC Seeded with Bank there may be an option to open SCSS online. but you have to visit the bank in most cases.

Scss interest rate SBI/Post office etc 2020 q1

Sbi 7.4%

post office 7.4%

Banks offered scss

Andhra bank, Bob, Syndicate bank,

  • Andhra Bank
  • SBI
  • Bank of Maharashtra BOM
  • Allahabad Bank
  • Bank of Baroda BOB
  • PNB
  • Indian Bank
  • Indian Overseas Bank
  • United Bank of India
  • Corporation Bank
  • Canara Bank
  • Dena Bank
  • Syndicate Bank
  • Central Bank of India
  • UCO Bank
  • Union Bank of India

Is SCSS better invest in Lump Sum and get every month income like pensions

Most people suggests LIC Annuities these are gives less returns (because insurance investment).

Lets calculate the return,

You & me we both senior citizens so we need to get monthly expenditures by parking out lumpsum amount.

Interest Rate 7.4% due to coid 19

Investment amount,  1,2,5, 10 lakhs

make sure the amount is white money (tax paid on it), if you sold the property after 3-5+*(not exactly) its tax free.

 

SCSS SBI Return calculation 1 or 1 Lakhs

 

The calculator we use now is compound calculator,FD calculator adds (3 months compounding)

SCSS,

SCSS Return Calculation for 5 years

Principal amount: `1,00,000 5 Lakhs 10 Lakhs
Rate of Interest: 7.4% 7.4% 7.4%
Tenure: 5yrs 5yrs 5yrs
Amount: ` 1,44,609 7,23,045 14,46,090

 

SCSS Return Calculation for 8 years

Principal amount: `1,00,000 500000 10 Lakhs
Rate of Interest: 7.4% 7.4% 7.4%
Tenure: 8yrs 8yrs 8yrs
Amount: ` 1,80,431 9,02,158 18,04,317

 

Note: USE Compound calculator, and FD Calculator

 


Senior Citizen Saving Scheme vs Fixed Deposit


Features SCSS FD 
Interest Rate 7.4% (April-June) 6.5%-8.45% (For Senior Citizens)
Lock in & Maturity 5 Year 5 Year
80C  Applicable Yes Yes
returns /interest taxable

(10K per year)

yes yes
Premature Withdrawal penalty 1.5% penalty as per bank

Why investing in SCSS is Better than FD?

under SCSS scheme qualifies for the benefit of Section 80C.  Read more Fixed deposit 80C.

Tax saver FD min 5 years lockin.

SCSS interest rates reviews and changes quarterly as per economy.

Important rules about SCSS

if the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.

 

You may like:

  • sukanya samriddhi yojana Interest rate returns, tax benefits #how to open
  • NPS How to open Account #Make Payment # check balance online # Download Pran
  • post office time / FIxed deposit VS Bank FD Tax benefits, Interest rate calculation
  • Post office RD Vs Bank RD Tax benefits Return Calculation interest rates




Calculators

  • Bike EMI calculator
  • Car loan emi calculator
  • compound interest calculator
  • EPF Calculator epf interest pension calculator excel formula format download
  • Fixed deposit FD calculator
  • home loan emi calculator
  • Personal loan emi calculator
  • Recurring deposit RD calculator
  • SIP Calculator

Useful topics

  • EPFO uan portal
  • uan passbook
  • epf withdrawal
  • uan employer unified

Saving Schemes

  • Post office RD
  • post office FIxed deposit
  • POMIS
  • NSC National Savings Certificate
  • sukanya samriddhi yojana
  • NPS
  • PPF Account
  • Senior Citizen Savings Scheme (SCSS)

Disclaimer

Note: We are not affiliated with EPFO. created this sole purpose of helping people & awareness about pf.

All the questions answered in the Articles, ask your questions in the comment.

 

epf claim status shows payment under process epfo

  • Contact
  • About us
  • Disclaimer & Privacy Policy



Recent Articles

  • EPFO Latest News & PF Rules | budget 2020 7.5 lakh limit |covid-19 75% withdraw | Regulatory updates
  • PPF Account Application process Interest rate, return calculation Tax Benefits
  • E aadhar card update /download/ correction status details
  • EPF Balance Enquiry download passbook with uan & mobile 3+ ways to know
  • UAN Activation & Registration status at epfo portal (3+Steps process)

Copyright © 2023 · All rights Reserved epfo help