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Here's Your Step-by-Step Guide to Using a Senior Citizen Saving Scheme Calculator

Here's Your Step-by-Step Guide to Using a Senior Citizen Saving Scheme Calculator

SCSS is a government-backed tax-saving programme operated by the post office. A SCSS calculator may be used to compute the value of a SCSS investment as well as the interest earned at the conclusion of the investment period.

Who Should Put Money into a SCSS Investment Plan?

SCSS is a retirement programme for older persons. Investors searching for tax-advantaged investment opportunities might participate in this plan since it qualifies for tax exemption. The government is supporting this senior citizen investment options programme. As a result, the profits are guaranteed. This programme is for investors who want a steady stream of income from their assets. To invest in this plan, however, one must fulfil the qualifying requirements.

Criteria for Eligibility

  • The initiative is only open to Indian residents.
  • Individuals must be at least 60 years old.
  • This senior citizen plan is open to anyone who have accepted voluntary retirement at the age of 55-60. They should, however, have retired in accordance with superannuation and VRS requirements. They should also open the account within a month of receiving their retirement payments.
  • After completing a certain condition, retired military people can create senior citizens' savings accounts.
  • The Senior Citizens Savings Scheme is not open to NRIs, PIOs, or HUF members.

SCSS Scheme Characteristics

The SCSS has the following features:

Rate of Interest

SCSS has a 7.4 percent interest rate. The SCSS interest rates are reviewed by the Ministry of Finance every quarter, and they are subject to change.

Steady Income

The programme provides older individuals with a source of income. This is due to the fact that the programme ensures a steady stream of revenue in the form of quarterly interest payments. Beginning April 1st, interest payments are made at the start of each quarter.


The scheme has a five-year lock-in term. The strategy reaches maturity after five years. Investors, on the other hand, can prolong it for another three years.


Investors can invest as little as INR 1000 and as much as INR 1000 in multiples of 1000. The highest amount of money that may be invested in a SCSS plan is INR 15 lakhs.


One can cancel their SCSS account at any time. The government, on the other hand, imposes a punishment in the form of interest. After one year of use, the SCSS account can be closed. The penalty for doing so is 1.5 percent of your income. The penalty is 1% if the account is closed after two years from the date it was opened.

Tax Benefits

Investments in SCSS are tax deductible under Section 80C of the Internal Revenue Code. The interest generated, on the other hand, is taxed at the individual income tax slab rate. In addition, if the interest is greater than INR 50,000, TDS is deducted. When submitting tax returns, the same might be claimed. However, tax laws are subject to change from time to time.

What is the purpose of a SCSS scheme calculator?

The SCSS calculator may be used to calculate the maturity and interest amounts. The Senior Citizen Savings Scheme is a programme that allows senior citizens to save money. SCSS is one of the most popular investing options for retirees. The current SCSS scheme interest rate is 7.40 percent per annum. In addition, the scheme's investment duration is 5 years.

The Senior Citizen Savings Scheme Calculator has the following features :

  • Maturity Amount: Calculates the maturity value depending on the amount invested, the duration of the investment, and the rate of interest.
  • Total Interest Earned: Calculates the total interest earned during the investment's lifetime.
  • Quarterly Receivable Interest: The Senior Citizen Savings Scheme Interest Calculator r also calculates the quarterly interest that an account holder will receive over the course of the investment period.

How to Use a Senior Citizen Savings Scheme Interest Calculator?

A free Senior Citizen Savings Scheme Interest Calculator may be found on the internet. An investor may use the senior citizen saving scheme calculator to figure out how much money they can make from their SCSS investments. Investors can choose to receive interest payments every three months or every six months. As a result, the SCSS interest calculator additionally displays the quarterly interest amount to make the returns easier to comprehend.

A step-by-step tutorial on how to use the senior citizen saving scheme calculator is provided below, along with an example.

Mr Gupta decides to save for his retirement by investing in SCSS. He intends to put in INR 3,00,000 in the plan. Mr Gupta can calculate his maturity value and interest received by entering his investment amount into the SCSS interest calculator.

INR 3,00,000 (about)

5 years' tenure

Interest rate: 7.40%

INR 4,11,000 is the maturity amount.

INR 1,11,000 in total interest earned

As a result, Mr Gupta's investment has a maturity value of INR 4,11,000. Let's say Mr Ravi wants to pay his interest in quarterly instalments. The senior citizen saving scheme calculator calculates the quarterly interest amount in this scenario as well.

Interest on receivables is INR 5,550 each quarter.

The SCSS programme can assist retirees earn a steady income throughout their golden years. This strategy allows people to invest their retirement funds. Before investing in the SCSS plan, one must first determine whether they are eligible. The senior citizen saving scheme calculator may be used to calculate the quarterly revenue that can be earned from the scheme. It also displays the entire maturity amount as well as the total interest generated on the investment.


*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

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