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Benefits Of Senior Citizens Savings Scheme, PPF (Public Provident Fund). Read

Benefits Of Senior Citizens Savings Scheme, PPF (Public Provident Fund). Read


Benefits Of Senior Citizens Savings Scheme, PPF (Public Provident Fund). Read

PPF and Senior Citizen Financial savings Scheme are good long run funding choices

Buyers searching for long-term and protected investments to make sure a safe future for themselves and their households can all the time depend on some time-tested submit workplace financial savings schemes.

Allow us to have a look at these submit workplace financial savings schemes for long-term investments.

Senior Citizen Financial savings Scheme (SCSS)

Senior Citizen Financial savings Scheme (SCSS) is a small financial savings scheme that’s fairly in style amongst senior residents regardless of the presence of different comparable schemes just like the Nationwide Pension Scheme (NPS) and Pradhan Mantri Vyay Vandana Yojana.

Adults over the age of 60, retired authorities workers over the age of 55 however underneath the age of 60 and retired navy personnel over the age of 50 however underneath the age of 60 can set up an SCSS account. 

Beneath this scheme, a senior citizen can open an account individually or collectively with their partner by making a minimal deposit of Rs 1,000 with a most deposit of Rs 15 lakh.

Senior residents also can declare tax advantages as much as Rs 1.5 lakh underneath part 80C on investments made underneath SCSS.

The scheme presently gives a return of seven.four per cent every year, payable each quarter. The SCSS has a 5-year maturity time period. Nonetheless, untimely withdrawals are permitted any time after opening with a penalty.

Public Provident Fund Account (PPF)

PPF is among the many hottest funding merchandise for long-term traders. With a minimal deposit of Rs 500 and a most annual contribution of Rs 1.5 lakh, an grownup who’s a rustic resident can arrange a PPF account. In distinction, within the case of a minor, an account underneath the scheme may be opened on their behalf by a guardian.

Deposits underneath the PPF scheme are eligible for exemptions underneath Part 80C of the Earnings Tax Act deductions. PPF has a 15-year maturity interval, and on deposits, traders can obtain curiosity at a charge of seven.1 per cent, which is yearly compounded. 

Additionally, the curiosity earned underneath the scheme is totally tax-free as per the provisions of the Earnings Tax Act.

After 5 years, aside from the yr of account activation and depositors with maturity want, a subscriber can withdraw as much as 50 per cent of the quantity.

After finishing the 15-year maturity interval, an investor may additionally select to increase the PPF account for an extra 5-year interval.

There may be additionally an choice of prematurely withdrawing the quantity from a PPF account in case of an emergency, however solely after 5 years of opening the account.

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Written by Harry Rosen

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