If your father has retired or about to retire, he would be wondering where he should park his money. The senior citizen saving scheme (SCSS) is the simplest investment vehicle among all options available for retirees. Given the benefits it offers, many retirees want to write a cheque of Rs 15 lakh at the earliest. Here are five points that all retirees should note before writing a cheque.
An SCSS account can be opened by an individual who is above the age of 60. Any individual, who has opted for a voluntary retirement scheme or retired between the age group 55 and 60 years, can opt for this scheme within one month of retirement. For defence personnel, the retirement restriction has been lowered to 50 years or more.
An individual can operate more than one account individually or jointly, subject to the Rs 15 lakh deposit limit in all accounts put together. A joint account is allowed only with one's spouse. An individual cannot open a joint account with his son or daughter.
The scheme pays interest quarterly at the rate of 8.3 percent. Assured pay-out at the end of each quarter is the biggest attraction of the scheme. The rate of interest is subject to revision each quarter.