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News18
a day ago
- 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
6 days ago
- 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.


News18
7 days ago
- Business
- News18
SCSS Explained: 8.2% Interest, Tax Savings, And Guaranteed Income For Senior Citizens
SCSS not only provides safety but also offers a regular income to retirees. Senior citizens often look for safe and steady income options. At a time when fixed deposit rates are fluctuating and many investment options offer lower returns, one scheme stands strong – the Senior Citizen Savings Scheme (SCSS). SCSS not only provides safety but also offers a regular income to retirees. It gives an impressive 8.2 per cent per annum interest. Senior citizens can also get a tax benefit under Section 80C up to Rs 1.5 lakh. What is SCSS? The Senior Citizen Savings Scheme is a government-backed savings plan designed specifically for people aged 60 years and above. The scheme is available at post offices and authorised banks. The interest rate is paid every quarter. The minimum amount you need to deposit is Rs 1,000, and the maximum is Rs 30 lakh. When the total amount is less than Rs 1 lakh, an individual may deposit the money in cash. When the deposit exceeds Rs 1 lakh, the person should pay using a cheque. Repayment Tenure The repayment tenure for SCSS is 5 years. But if you want to close it prematurely, you can do so by filling Form 2. But you cannot withdraw multiple times; only one-time full withdrawal is allowed. If you want to close the account before 1 year, then you will have to return all the interest you earned. And if you close the account after 1 year but before two years, then a penalty of 1.5 per cent will be imposed on your deposit amount. If you are willing to close the account after 2 years, then a penalty of 1 per cent will be deducted from your deposit. How to open SCSS account? Go to any post office or authorised bank branch. Fill Form A, which is the SCSS account opening form. Enter personal details such as name, date of birth, address, deposit amount and nominee details. Submit the required documents such as Aadhaar Card, PAN card, passport, passport size photo and retirement proof. Deposit the amount in cash if the amount is less than Rs 1 lakh or by cheque or demand draft for above Rs 1 lakh. Once the verification is done, the account will be opened. You will get a passbook or account confirmation. You can also open a joint account with your spouse but the primary account holder must be a senior citizen. 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.