The Post Office Senior Citizen Savings Scheme (SCSS) is a popular and safe investment option for senior citizens in India. It provides a regular source of income after retirement. In this article, we will explain how this scheme works and how you can invest in it. We will also share all the details on how anyone can earn ₹20,500 per month from this scheme without hassle.

What is SCSS?

The Senior Citizen Savings Scheme (SCSS) is a government-backed savings scheme specially designed for senior citizens. It provides a fixed income to individuals aged 60 years and above. The scheme offers an interest rate of 8.2% per annum, which is generally higher than other conventional savings options, such as fixed deposits. The interest is paid quarterly, making it an excellent option for those who need a regular income.

Eligibility Criteria

To invest in SCSS, you need to meet the following eligibility criteria:

  1. Age: You must be 60 years or older to invest in this scheme.
  2. Retired (55-60 years): If you are a retiree or have voluntarily retired, you can also apply between the ages of 55 and 60.
  3. Defence Personnel: Defence personnel can invest in SCSS from the age of 50 years.
  4. Joint Account: You can open a joint account with your spouse to both benefit from the scheme.

Benefits of SCSS

  1. Interest Rate: The scheme offers an annual interest rate of 8.2%, which is paid quarterly.
  2. Safe Investment: SCSS is a government-backed scheme, ensuring the safety of your funds.
  3. Tax Benefits: You can claim a tax deduction under Section 80C of the Income Tax Act for investments up to ₹1.5 lakh.
  4. TDS: TDS will be deducted only if the interest earned in a year exceeds ₹50,000 for senior citizens (₹40,000 for others).
  5. Tenure: The scheme has a tenure of 5 years, with an option to extend it for another 3 years.

How Much Can You Earn from SCSS?

The amount you invest in SCSS directly affects how much you can earn monthly. Here’s an example:

  • Invest ₹30 lakh: You can earn approximately ₹20,500 per month (₹2.46 lakh per year).
  • Invest ₹10 lakh: You will receive around ₹6,800 per month (₹81,600 per year).
  • Invest ₹5 lakh: You will get about ₹3,400 per month (₹40,800 per year).

How to Apply for SCSS?

To apply for SCSS, visit your nearest post office and fill out the application form. The process is simple. You will need to provide:

  • Proof of Identity
  • Proof of Age
  • Proof of Address

This scheme offers a great way to earn a regular income post-retirement while ensuring the safety of your investment.