1. What is the Senior Citizen Savings Scheme?

The Senior Citizen Savings Scheme (SCSS) is a government-backed savings program in India specifically designed for senior citizens. It offers regular income with quarterly compounded interest and provides tax benefits under Section 80C of the Income Tax Act.

2. How Does the Calculator Work?

The calculator uses the SCSS compound interest formula:

Where:

• \( A \) — Maturity amount (INR)
• \( P \) — Principal investment amount (INR)
• \( R \) — Annual interest rate (decimal)
• \( T \) — Time period in years

Explanation: The formula calculates quarterly compounding, where interest is calculated and added to the principal every three months, leading to compounding returns over the investment period.

3. Importance of SCSS Calculation

Details: Accurate calculation of maturity amount helps senior citizens plan their retirement income, understand potential returns, and make informed investment decisions for financial security.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate as a percentage, and time period in years. All values must be positive numbers to get accurate results.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for SCSS?
A: Indian residents aged 60 years or above, or those aged 55-60 who have retired under a voluntary retirement scheme.

Q2: What is the current interest rate for SCSS?
A: The interest rate is revised quarterly by the government. Check the latest rates on the official NSDL or post office website.

Q3: What is the maximum investment limit?
A: The maximum investment limit is ₹30 lakhs for individual accounts and ₹60 lakhs for joint accounts with spouse.

Q4: What is the tenure of SCSS?
A: The scheme has a tenure of 5 years, which can be extended for an additional 3 years upon maturity.

Q5: Are premature withdrawals allowed?
A: Premature withdrawal is allowed after 1 year with certain penalties. After 2 years, the penalty is reduced.