Can my wife and I open two joint Senior Citizens’ Savings Scheme accounts?

My wife and I want to open two joint Senior Citizens’ Savings Scheme (SCSS) accounts. Can we invest Rs 15lakh in each of the accounts?

Prableen Bajpai Founder, Managing Partner, FinFix Research & Analytics replies: Yes, you can do so. A senior citizen can invest up to Rs 15 lakh in an SCSS account. This account can be held jointly with one’s spouse. As the entire investment in an SCSS account is attributable to the first holder, a jointly held account does not deter the person’s spouse from opening an SCSS account. So, a total of Rs 30 lakh can be invested by you and your wife in two jointly-held accounts. The five-year tenure of the scheme can be extended by three years. A premature exit is allowed only after one year with some penalty payment. The interest is taxable and subject to change. At the current interest rate, 8.7%, an investment of Rs 15 lakh will help earn a quarterly pre-tax return of Rs 32,625. Please note, if the money that is put in your wife’s account is earned by you, then the interest income from her account will be clubbed with your income.

I am 36 years old and want to invest Rs 6 lakh for the long term. The goal is make the money grow, instead of letting it lie in the bank. Please suggest schemes to invest in.


C.R. Chandrasekar CEO and Co-Founder, FundsIndia.com replies: Given your age and time frame, you can consider a 70:30 equity-debt allocation. You may invest 30% (Rs 1.8 lakh) in Mirae Asset India Equity, and 20% (Rs 1.2 lakh) each in Franklin India Prima, Kotak Standard Multicap and HDFC Short Term Debt, and 10% (Rs 60,000) in UTI Treasury Advantage. Invest in the equity schemes via a systematic transfer plan over the next 6-8 months, considering the possible volatility in the market before the general elections.