In this era of inflation, regular and secure income after retirement has become a top priority for every senior citizen. While the stock market and mutual funds face the risk of volatility, some government schemes offered by the post office still offer investors reliable returns.
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Post Office Senior Citizen Savings Scheme: In this era of inflation, regular and secure income after retirement is a major concern. In such a situation, a scheme that promises a guaranteed monthly income without any risk is nothing short of a boon. The Post Office Senior Citizen Savings Scheme (SCSS) is one such government scheme, which is not only zero-risk, but also offers a regular monthly income of over ₹17,000.
Why is Post Office SCSS special?
Investors’ confidence in Post Office small savings schemes is also strong because they are guaranteed by the government. SCSS is also considered a zero-risk investment scheme. This scheme currently offers an attractive interest rate of 8.2%, which is higher than many bank fixed deposits. The special thing is that once you invest, this interest rate remains applicable for the entire maturity period.
Start investing with just Rs. 1,000
Investment in this scheme can be started with just Rs. 1,000. The maximum investment limit is Rs. 30 lakh, which is possible under a joint account. Once you invest, you start receiving interest every three months, ensuring regular income.
Tax Savings Also Benefit
SCSS is not only a source of income but also helps in tax savings. Investments made in this scheme are eligible for a tax deduction of up to ₹1.5 lakh annually under Section 80C of the Income Tax Act. This means that along with the earnings, the tax burden also reduces.
Special age relaxation is available.
This scheme is specifically designed for retirees. Individuals aged 60 and above can open an account. VRS employees between the ages of 55 and 60, and defense retirees between the ages of 50 and 60, can also invest.
5-Year Maturity, Quarterly Interest Payments
SCSS has a maturity period of 5 years, which can be extended by another 3 years. Interest is paid every three months. There is a penalty for premature closure, while in the event of the account holder’s death, the entire amount is transferred to the nominee.
How to earn Rs. 17,000 per month?
If an investor invests Rs. 25 lakh in SCSS, they receive approximately Rs. 2.05 lakh annually at an interest rate of 8.2%. The quarterly interest is ₹51,250, and the monthly interest is approximately ₹17,083. This means guaranteed monthly income without any risk.
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