The Senior Citizen Savings Scheme (SCSS) is a government-backed, risk-free post office scheme that offers an attractive interest rate of 7.4% per year. This rate is significantly higher than the retail inflation rate of 7% and even surpasses the interest rates of bank fixed deposits from institutions like SBI. For senior citizens seeking an additional source of income, the SCSS can be a prudent choice.
Here are some key details about the Senior Citizen Savings Scheme:
Eligibility: The scheme is available to Indian residents aged 60 years or above.
Investment Limit: You can invest a maximum of ₹15 lakh in the SCSS.
Interest Payout: The interest is paid out quarterly, providing a steady income stream.
Maturity Period: The SCSS has a maturity period of 5 years, which can be extended for an additional 3 years.
Tax Benefits: The interest earned is taxable, but there is no tax deduction at source (TDS) on the interest payments.
Risk-Free: Since it is a government-backed scheme, your investment is secure.
To create a second source of income, senior citizens can explore various options beyond the SCSS. These include starting a side business, investing in stocks, real estate, mutual funds, freelancing, or taking up part-time jobs.
Additionally, there are 45 ways to earn extra income from home in India, ranging from online opportunities to leveraging skills and hobbies.
Remember to consult a financial advisor to tailor your income strategy based on your individual needs and risk tolerance.