Senior Citizens Can Earn Over ₹12 Lakh Just from Interest in This Scheme – Full Details Inside

After retirement, senior citizens often look for safe investment avenues that offer steady and secure income. While Fixed Deposits (FDs) are popular, there's a government-backed scheme that could give them better returns — the Senior Citizens Savings Scheme (SCSS). With an attractive interest rate and tax benefits, this scheme can help earn more than ₹12 lakh over 5 years — solely from interest.

Why Senior Citizens Prefer SCSS Over FDs

FDs have long been the go-to option for retirees. But FDs offer limited returns, even with the additional 0.50% interest usually given to senior citizens. In comparison, SCSS offers a fixed interest of 8.2% per annum, which is higher than many current bank FD rates.

Key Features of SCSS:

• Interest Rate: 8.2% per annum (paid quarterly)

• Maximum Investment Limit: ₹30,00,000

• Minimum Investment: ₹1,000

• Maturity Period: 5 years (with a one-time 3-year extension option)

• Tax Benefits: Eligible for tax deduction under Section 80C

Note: You must apply for the extension within 1 year of the scheme’s maturity. The extended account earns interest as per the rate applicable at maturity.

How You Can Earn ₹12+ Lakh from Interest

Let’s assume you invest the maximum limit of ₹30,00,000:

• Quarterly Interest: ₹61,500

• Annual Interest: ₹2,46,000

• Total Interest in 5 Years: ₹12,30,000

✅ Total Maturity Amount = ₹30,00,000 (Principal) + ₹12,30,000 (Interest) = ₹42,30,000

Investing ₹15 Lakh? Here's the Earning Breakdown

If you invest ₹15,00,000:

• Quarterly Interest: ₹30,750

• Annual Interest: ₹1,23,000

• Total Interest in 5 Years: ₹6,15,000

✅ Total Maturity Amount = ₹15,00,000 (Principal) + ₹6,15,000 (Interest) = ₹21,15,000

Who Can Invest in SCSS?

• Anyone aged 60 years or above

• VRS retirees from civil sector (age relaxation allowed under certain conditions)

• Defense retirees (also eligible with age relaxations)

Bottom Line:

If you're a retiree looking for a safe investment with regular income, SCSS is a fantastic alternative to FDs. It not only offers higher returns but also guarantees capital safety and tax advantages. With smart planning, a senior citizen can easily earn over ₹12 lakh in 5 years — just from interest.