SCSS is not a Term Deposit
There are many misconceptions regarding Senior Citizens Savings Scheme. This is an attempt to clarify the issues related to SCSS.
The Senior Citizen Savings Scheme (SCSS), launched in 2004 is a deposit scheme introduced by the government of India to provide Guaranteed 9% Return to senior citizens through a safe investment. This scheme ensures a Regular Income stream for senior citizens in retirement. After 11 years the rate was increased to 9.3% on April 1, 2015. Now it has been reduced to 8.5% from October 1, 2016.
The capital in the SCSS is completely protected as the scheme is backed by the government of India, making it totally risk-free with guaranteed returns.
The interest earned on the deposit is fully taxable. There is also a limit on maximum amount of 15 Lakh Rupees.
The objective of SCSS, which is a Welfare Scheme, is to ensure a Regular Income stream to senior citizens in retirement, therefore it is not a Term Deposit with banks and it's rate of interest should be constant and not fluctuate with changes in Bank Rates announced by RBI.
Therefore the least the government can do is to restore the return on SCSS to 9.3% and consider revising it to 10% and eligible amount to 25 lakh Rupees, in view of rising costs of essential items and medical care. more
The Senior Citizen Savings Scheme (SCSS), launched in 2004 is a deposit scheme introduced by the government of India to provide Guaranteed 9% Return to senior citizens through a safe investment. This scheme ensures a Regular Income stream for senior citizens in retirement. After 11 years the rate was increased to 9.3% on April 1, 2015. Now it has been reduced to 8.5% from October 1, 2016.
The capital in the SCSS is completely protected as the scheme is backed by the government of India, making it totally risk-free with guaranteed returns.
The interest earned on the deposit is fully taxable. There is also a limit on maximum amount of 15 Lakh Rupees.
The objective of SCSS, which is a Welfare Scheme, is to ensure a Regular Income stream to senior citizens in retirement, therefore it is not a Term Deposit with banks and it's rate of interest should be constant and not fluctuate with changes in Bank Rates announced by RBI.
Therefore the least the government can do is to restore the return on SCSS to 9.3% and consider revising it to 10% and eligible amount to 25 lakh Rupees, in view of rising costs of essential items and medical care. more
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Govt should send sms alert of all govt schemes. On Tue, Nov 8, 2016 at 11:52 AM, Mangesh Anaokar < support@localcirclesmail.com> wrote: > more
Nov 08
It is unfortunate that the government schemes mean for senior citizens are not advertised enough, and majority of the senior citizens, cannot take their advantage, as most of the people are not even aware of these schemes. So, another major task for the government is to appropriately advertise them. more
Nov 08
We have discussing on this issue for quite sometime now. FM should take n a and help senior citizens. SCSS _ interest rate_ 10%, Max. limit of deposit_ 30 Lakhs_ period 10 Years. Interest payment _ quarterly. more
Nov 05
My and many of my friends' experience is that most of the Banks do not help in openeing the SCSS account. They make all sorts of excuses to prevent us from opening this account. Banks should be instructed that they should facilitate the opening of this acount in all Branches and not in selected few more
Nov 05
I might be a bit dense but if the scheme guarantees 9% interest then how come the interest rate climbs and dips? Most of the schedule banks give similar interest rates to senior citizen, so what is the difference in SBI scheme? more
Nov 04
