Post Office Scheme: Post Office Senior Citizen Savings Scheme (SCSS) is considered a safe and reliable scheme, which offers 8.2% annual interest with government guarantee, which generally gives better returns than bank FDs.
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Post Office Scheme: The post office located a short distance from your house is not just for sending letters, but you can invest in many post office schemes. Senior Citizen Savings Scheme (SCSS) of the post office is considered a safe and reliable option. In this scheme, interest is available at the rate of 8.2% per annum with the guarantee of the government, which is now much better than the FD rate of banks.
This scheme is very beneficial for those who want regular income every month after retirement. The most special thing about SCSS is that it comes with a government guarantee. Investment can be started with just ₹ 1,000 and the maximum investment limit can be up to ₹ 30 lakh. People investing in this scheme also get the benefit of tax savings under Section 80C, which gives a rebate of up to ₹ 1.5 lakh annually.
Up to what age can one invest in this scheme?
Under this scheme, people aged 60 years and above can invest directly, while civil employees receiving VRS aged 55–60 years and retired defence personnel aged 50–60 years can also join it. Also, a person can open a joint account with his spouse.
The tenure of SCSS is five years, which can be extended for an additional three years. If the investor closes the account within one year, no interest is paid. If the account is closed between two to five years, the interest amount is reduced by 1% and if it is closed before that, a slightly higher penalty is applicable.
Monthly income of Rs 20,000 is guaranteed
If a senior citizen invests a lump sum of Rs 30 lakh, then he gets an annual income of about Rs 2.46 lakh i.e. about ₹ 20,500 per month. This regular income is transferred directly to the account in the form of interest every three months.
On the other hand, suppose you invest a lump sum of Rs 20 lakh in this post office scheme, then in 5 years under the interest rate of 8.2 percent, your maturity amount will be Rs 28,20,000. This will include interest of Rs 41,000 on a quarterly basis and the total interest will be Rs 8,20,000 in 5 years.
In such a situation, you will get a regular income of about Rs 13,666 every month.
So if you or someone in your family is a senior citizen and are looking for regular income, then SCSS can prove to be a reliable and safe option. While the interest rate is excellent, the tax savings and government guarantee make it even stronger. This scheme is a great friend to ensure financial security after retirement.
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