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5 things to note before investing in the senior citizen savings scheme

A senior citizen can operate more than one account individually or jointly, subject to a limit of Rs 15 lakh in all accounts put together.

May 29, 2018 / 11:40 AM IST
Aruna Gokhale (L), 81, watches as her husband Vidyadhar Gokhale, 84, plays guitar in their flat at the Athashri retirement village in Baner, on the outskirts of the western Indian city of Pune, June 18, 2013. The Athashri retirement community offers the over-55 crowd Western-style amenities such as a clubhouse, gym, library and pool but with a distinctly Indian twist: a temple on site where residents worship Ganesh, the elephant-headed god followed by many Hindus in Maharashtra state. The 180-unit development in the city of Pune, which enjoys better weather and less bustle than nearby Mumbai, overlooks open fields and hills and is set in lush gardens - an appealing escape from the crowds and grime of India's mega-cities. Picture taken June 18, 2013. REUTERS/Danish Siddiqui (INDIA - Tags: SOCIETY) - RTX113ZH

Aruna Gokhale (L), 81, watches as her husband Vidyadhar Gokhale, 84, plays guitar in their flat at the Athashri retirement village in Baner, on the outskirts of the western Indian city of Pune, June 18, 2013. The Athashri retirement community offers the over-55 crowd Western-style amenities such as a clubhouse, gym, library and pool but with a distinctly Indian twist: a temple on site where residents worship Ganesh, the elephant-headed god followed by many Hindus in Maharashtra state. The 180-unit development in the city of Pune, which enjoys better weather and less bustle than nearby Mumbai, overlooks open fields and hills and is set in lush gardens - an appealing escape from the crowds and grime of India's mega-cities. Picture taken June 18, 2013. REUTERS/Danish Siddiqui (INDIA - Tags: SOCIETY) - RTX113ZH

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.

Eligibility
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.

Regular income
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.