What is Senior Citizen Savings Scheme? Know advantages and disadvantages

Meant primarily for the senior citizens of India, the Senior Citizen Savings Scheme (SCSS) is a government-backed retirement benefits programme. Through the scheme, senior citizens in India can invest a huge amount, both individually or jointly to get income at regular intervals along with tax benefits. Notably, it is a Post Office savings scheme, thus elderly citizens open an SCSS account in a Post Office branch or an authorised bank. For eligibility, anyone above the age of 60 can invest in the scheme through which they can earn an interest of 8.2%. While the scheme provides a secure investment at an attractive rate of interest, it has several advantages and disadvantages, that customers need to know before putting away their money on the SCSS.
Advantages of Senior Citizen Savings Scheme (SCSS)
1. Senior citizens who apply for the SCSS scheme can gain tax benefits under Section 80C of the Income Tax Act to further get up to Rs 1.5 lakh deduction u/s 80C.
2. Being a government-backed scheme, it is very safe to invest in, with very less chance of default or loss.
3. The scheme also provides an opportunity to investors to  withdraw their money anytime after one year from the account opening. However, if any person makes the decision to close the account within one year of opening it, they will just receive the principal amount, without any interest. 
4. In the case of SCSS, customers shifting to different cities can also get their SCSS accounts transferred to their closest bank/post office branch.
Disadvantages of Senior Citizen Savings Scheme (SCSS)
1. Investors are paid interest every quarter. However, if not claimed, they will not receive any additional money on it.
2. A certain amount of TDS ( Tax Deducted at Source) will be cut from the interest accumulated in the SCSS account if it exceeds Rs 50,000 in a financial year.
3. The interest rate in the SCSS scheme is  fixed, therefore those who had opened their accounts earlier, will not receive interest on the new rates.
4. The scheme is only accessible to those over the age of 60, except for d efence employees (50-60 years) or civilian employees (55-60 years). However, those in their 30s and 40s cannot avail the scheme.
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