One of the safest investment for senior citizens, with the interest being paid out quarterly. Since it is backed by the central government, the returns are assured, but it comes with a lock-in period of 5 years. You can invest up to Rs 15 lakh and rely on quarterly interest pay-outs for liquidity needs. SCSS also offers tax deductions under section 80C. The SCSS interest rate is amongst the best on offer amongst debt instruments.
At the juncture of retirement, the most important thing that a senior citizen or retiree is looking for is the safety of capital, followed by substantial returns, liquidity and tax saving.At present, there is no other financial product that can fulfill these requirements other than SCSS. With a lock-in period of only 5 years, and you have the best financial investment product suitable for senior citizens.
SCSS has been specifically designed keeping senior citizens in mind, as it is in simple terms, a deposit scheme with guaranteed returns and minimal risk. The investor can conveniently use this scheme to generate a regular income flow. SCSS, in true sense can bridge the shortfall between the pension and regular expenses of a senior citizen.
Old age and retirement bring a lot of uncertainties and doubts in the minds of people and lack of financial awareness is one of them. Senior citizens are always wary of putting their money in financial products out of fear of losing their capital. SCSS with its sovereign guarantee of capital protection can be an ideal investment vehicle at this stage of life.
