5 Year Senior Citizen Savings Scheme Senior Citizen’s Savings Scheme is only for those who falls under the category of senior citizen i.e. with age of above 60years (58 years in some cases) and only those below 60 can invest in the National Pension System (NPS). If you don’t want to rely just on pension, then this scheme serves a good investment opportunity. Amount you can invest: You can deposit the amount in your account only one time and the amount should not exceed Rs.15 lakh. You can create multiple accounts or you can open a joint account with your spouse but the limit will be calculated with all accounts collectively. this means that total value of all your accounts can’t exceed the limit of 15 lakhs. Returns: With the best interest rate it gives higher assured returns which is approximately 8.5%. it’s one of the best saving scheme option available for senior citizens. lock in period: The initial maturity period is 5 years and can be extended up to 3 years more, after the scheme reaches maturity Tax benefits: You get the tax benefit of section 80C on the amount invested under this scheme. Although the interest is taxable and will be deducted as TDS, if the interest amount is more than Rs. 50,000 p.a. One of the best thing about this scheme is that it can be foreclosed after 1 year with some penalty amount. after two years penalty is 1 % of balance and before that it is 1.5% of balance. Expert’s advice: ? SCSS is definitely the most trusted option for investing your lump sum retirement funds received. If you don’t want to rely just on pension, then this scheme serves a good investment opportunity. SCSS gives twin benefits for interest earned i.e. interets from this scheme + if taken with a post office accrued interest auto transferred to a saving account which yields low but some interest to add on.