Comparison of Senior Citizen Savings Scheme (SCSS) and Varishtha Pension Bima Yojana 2014

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• Hi,

  My Self 35 years old . I want to know the secure and good Policy for my child education. My child is now 4 years old. Could you please let me suggest so that I can make good amount of funds for his better education.

  Regards,
  Anil

  • Anil-Are you looking for INSURANCE or INVESTMENT?

    • Hi ,

      Firstly I am sorry I have posted here but your comments were pretty clear so want to ask you. My purpose for child Education. Where I should get security if anything happens to me and also Once the maturity period is done then the lum-sum amount should be helpful for my Kid.

      Kindly provide the best suggestion for me..

      Regards,
      Anil

      • Anil-Then buy Term Life Insurance to protect your life. Invest rest of the amount as per your risk taking ability.

        • Yes I do having now term insurance policy but now looking to opt something else which may helpful for his future education... So pls suggest if you can any ?

        • Anil-Why searching for POLICY rather than a product where you can invest? Refer my post "Top 10 Best SIP Mutual Funds to invest in India in 2018".

• Dear sir Basavraj,
  Thanks for sharing your excellent comparison between SCSS and VPBY.
  The postal schemes are good but the staff of post office are more busy in their official work , no one explains...more over no agents involved in promoting such postal schemes...so your informative and unbiased comparison becomes useful.
  .thankfull to you again on behalf of Sr. Citizens.

  • Anil-Pleasure :)

• Sir

  Congratulaions on your yeomans service to educate the public.

  I am senior citizen of 65 years age and I have opened an SCSS WITH POST OFFICE for a deposit of Rs 15 lakhs.

  Can I open another account with my spouse aged 58 years for another 15 lakhs ? Kindly clarify. Thanks

  S N

  • Nagarajan-Yes sir you can open another SCSS account in your wife name.

• Dear Sir,

  Glad to see ur efforts explaining all the details in detail. Appreciate ur good work. Keep it up.

  I have a query : my parents will retire this year. Pls suggest the best investment options available.

  • Nick-Without knowing much about their finance, how can I guide randomly?

• Hello Sir ,

  First of all , I'd like to thank you for making a fairer , unbiased comparison sheet . Please keep up the great work .

  My mother retired on 31st May 2014 from central government , with total compensation of around 44.5 Lakh . Her monthly pension would be around 34'000 . We are in the process of buying a flat however we would not touch the compensation amount . She may live in a rented apartment ( since she doesn't want to go out of our hometown ) till we buy a flat for her . She doesn't have any liabilities . And I can take care of the medical expenses via investing in my corporate medical policy .

  Is there any other plan like Varishtha Pension Bima Yojana where she can invest ? I'm thinking out investing in Post Office Senior Citizen Savings Scheme (SCSS) close to 15 lakh .

  SBI annuity 665000 and rest under short term Fixed Deposits . While leave around 4 -5 lakh in her account .

  I'd want her to have at-least 50K ( including pension ) in her hand at the start/end of every month(I'm dividing SCSS /12 although it'll be released quarterly ) .

  Please Guide ,

  Regards

  Yogesh

  • Yogesh-Instead of Varishta Pension Bima Yojana, you can opt for Post Office SCSS or LIC's Jeevan Akshay VI.

• I am a senior citizen and today only I saw your blog. First of all, I appreciate your work on this and you have done an awesome job by spreading awareness in filling up 15H & 15G. In the details of income received can we include SCSS interest income and has this to be shown in a separate form 15H over and above the form for FD interest income. The total income means the gross income before deducting 80C and donation or the net income. Can u clarify.

  • Raman-Yes, you have to show SCSS interest income in Form 15H. Net income post tax deduction income.

• Is govt announce rate of interest for this scheme everyear?

  • Jay-You no need to worry about interest rate and they not declare. Pension is fixed based on the term (age) and the amount you pay.

• Hi want to take up the Senior Citizen Savings Scheme but i have a confusion regarding TDS. the TDS is charged @10% in interest rate is above 10,000. I am retired senior citizen and i do not have any other income source so if i fill form 15H then will TDS still be deducted? Or not? I am planning to put 6lakhs. So how much will the TDS be cut and how can i save it?

  • Paps-If you submit Form15H then they not deduct TDS. You can view my earlier post "Video Tutor Guide-How to fill Form 15G and Form 15H?".

• What is the tax benefit for LIC's single premium policies?, Can we avail entire amount u/s 80 (C)

  • Sounder-Whether your question is about this particular scheme?

• Really good job. Appreciate your great service.
  Please keep it up.
  Thanks.

  • Jeevan-Thanks :)