SCSS is a tax saving scheme offered by the post office and back by the Government. By using a SCSS calculator one can calculate the value of their SCSS investment in 2023 and the interest earned on it at the end of the investment tenure.
What is a Senior Citizen Saving Scheme (SCSS) Interest Calculator?
SCSS calculator helps in calculating the maturity amount and interest amount. Senior Citizen Savings Scheme SCSS is among the most preferred investment schemes for senior citizens. The current interest rate offered on SCSS scheme is 8.20% p.a.. Also, the investment tenure for the scheme in 5 years.
Following are the features of SCSS calculator:
- Maturity Amount: Determines the maturity value based on the investment amount, investment tenure and rate of interest.
- Total interest earned: Determines the total interest earned during the tenure of the investment.
- Quarterly receivable interest: The SCSS calculator also determines the quarterly interest an account holder would earn during the investment tenure.
How to use Scripbox’s SCSS Calculator?
Scripbox’s SCSS interest calculator is available online and is free to use. The SCSS calculator helps an investor to determine their potential returns from their SCSS investments. Investors can opt for quarterly interest payments. Therefore, the SCSS interest calculator also provides the quarterly interest amount for the ease of understanding the returns.
Below is a step by step process of how to use the SCSS calculator with an example.
Mr Ravi decides to invest in SCSS for his retirement. He wishes to invest INR 3,00,000 into the scheme. Inputting the investment amount into the SCSS interest calculator will help Mr Ravi determine his maturity value and interest earned.
- Investment Amount = INR 1,50,000
- Tenure = 5 years
- Interest = 8%
- The maturity amount is INR 2,10,000
- Total interest earned is INR 60,000
Therefore, the maturity amount for Mr Ravi’s investment is INR 2,10,000. Additionally, suppose Mr Ravi wishes to opt for quarterly interest payments. In that case, the Scripbox’s SCSS calculator also determines the quarterly interest amount.
Quarterly receivable interest is INR 3,000.
Benefits of Using an SCSS Interest Calculator
The following are the benefits of using the Senior Citizen Saving Scheme Interest calculator:
- Easy to use: SCSS calculator is very simple and easy to use. All one has to do is enter the investment amount. The SCSS interest rates and tenure are already fixed. Hence one need not enter those figures in the calculator. The calculator returns the maturity amount, interest earned, and quarterly interest earned.
- Time-saving: The calculator saves time for an investor. The investor need not perform the calculations manually and waste time on the same. Instead, he/she can use the calculator to calculate the results for the desired investment amount quickly.
- Accuracy: The calculator is very accurate. There is no chance of error for the inputs.
- Future Planning: By using the calculator, one can plan their income and expenses accordingly. Since the calculator gives the maturity amount, total interest earned and the quarterly interest. They can calculate their monthly expenses and further investments accordingly.
- Comparison: By inputting multiple investment amounts, investors try out different scenarios to plan their future income.
- Free to use: The SCSS calculator is available online and is free to use multiple times.
SCSS scheme can help senior citizens earn a regular income in their retirement life. One can invest their retirement benefits in this scheme. Before investing in the SCSS scheme, one has to check whether they are eligible to invest in it. Scripbox’s SCSS calculator helps in calculating the quarterly income one can earn from the scheme. It also gives the total maturity amount and the total interest earned from this investment.
How to Invest in a Senior Citizens Saving Scheme (SCSS)?
One can open a senior citizens saving scheme account in any post office. However, senior citizens can also invest in this scheme though some banks. To make the scheme more accessible to the citizens, the government has authorized a few banks to accept SCSS investments. The list of authorized banks are:
- Bank of Baroda
- Bank of India
- Canara Bank
- Central Bank of India
- ICICI Bank
- IDBI Bank
- Punjab National Bank
- Punjab & Sind Bank
- State Bank of India
- UCO Bank
- Union Bank of India
Frequently Asked Questions
According to the recent budget 2023 the maximum investment amount for senior citizen savings scheme is set at Rs. 30 Lakhs.
SCSS scheme is for senior citizens who are retired. Since this scheme is qualified for tax exemption, investors looking for tax saving investment options can invest in this scheme. This senior citizen scheme is government-backed. Hence the returns are guaranteed. Investors looking for fixed, regular income from their investments can invest in this scheme.
There are multiple tax saving options that qualify for tax deduction under Section 80 C of the Income Tax Act. Following are some of the popular schemes:
1. National Savings Scheme
2. Public Provident Fund
3. Employee Provident Fund
4. Equity Linked Savings Scheme (Tax saving mutual funds)
5. Sukanya Samriddhi Yojana
6. Tax saving fixed deposit
One can use an income tax calculator to calculate the amount on which the taxes can be saved. Additionally, Scripbox Income Tax Calculator gives suggestions on how to save more tax, if there is a scope for the same.
Following are the list of documents one requires to open a SCSS account:
1. Aadhar Card
2. PAN Card
4. Voter ID
5. Telephone Bill
6. Electricity Bill
7. Senior Citizen Card/ Birth Certificate
8. Two passport-sized photographs
9. Self-attested photocopies of the above documents have to be submitted at the account opening branch.