Post Office Scheme – The Post Office Senior Citizen Savings Scheme (SCSS) is a safe and profitable investment option for senior citizens, providing regular income with good returns to those aged 60 and above. Investments can range from a minimum of Rs 1,000 to a maximum of Rs 30 lakh, with an interest rate of 8.2% for the second quarter of the current financial year 2025-26.
Individuals investing in SCSS also receive a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Interest is credited to the account quarterly and can be withdrawn. The scheme has a maturity period of 5 years, which can be extended by up to 3 years if needed. Investors withdraw funds before the 1-year period will not receive any interest.
Withdrawals between 1 and 2 years attract a 1% interest deduction, while withdrawals between 2 and 5 years attract a 1% interest deduction. Thus, the SCSS scheme offers senior citizens financial security and regular income in their old age, offering better interest rates than banks and offering a risk-free investment option.
Additionally, the scheme is flexible, allowing investors to withdraw funds after a one-year hold period if needed. While there are some restrictions on withdrawals, these rules are designed with security and regulatory standards in mind. Another key feature of the Senior Citizen Savings Scheme is that spouses can open joint accounts, providing double the benefits and improved financial security. Through this scheme, senior citizens can ensure regular income with high interest rates after retirement, without any risk, making their lives financially comfortable and prosperous.
This scheme also provides age relaxation for specific categories, such as civil sector employees taking VRS and those retired from the defense services. This scheme can alleviate financial worries after retirement and create a source of guaranteed income, ensuring a happy life for senior citizens.