Senior citizen savings scheme (SCSS) is a popular government backed small savings scheme especially curated for the golden years of senior citizens an individual over the age of 60 can establish a SCSS account by depositing a minimum of rs 1000 and in multiple of 1000 subject to a cumulative maximum of rs 30 lakh in all SCSS account whether jointly or individually SCSS promise an annual interest rate of 8.2% on a quarterly basis

This scheme gives regular income options with tax benefits investments made in the SCSS are eligible for tax benefits under section 80C of the income tax act upto a limit of 1.5 lakh however the interest earned is taxable

The drawback of the SCSS is the maximum investment limit important by the scheme currently set at 30 lakh this restricted individuals from allocating large sums of money into the scheme , potentially limiting their earnings potential