If you’re looking to invest your entire savings in the safest, government-guaranteed avenue after retirement, the Post Office Senior Citizen Savings Scheme (SCSS) is the best option for you. This scheme ensures complete investment security and provides a steady source of fixed income. By investing in this excellent scheme, you can easily earn up to ₹20,000 per month. Learn who can open an account under this government scheme, how much interest will be earned, and the maximum possible income.
Who can open this special account
The Post Office SCSS scheme is specifically designed for senior citizens, with clear eligibility criteria. All senior citizens aged 60 and above can invest in this scheme. If a person retires between 55 and 60 years of age, they can join the scheme within one month of their retirement. Those taking voluntary retirement (VRS) can also invest in this scheme at the age of 50 or above.
Great Investment, Interest, and Tenure Rules
SCSS comes with a fixed tenure and high interest rates, providing strong financial support to retired individuals. You can start with as little as ₹1,000. The maximum investment limit for a single account is ₹30 lakh. However, a husband and wife can open a joint account and invest up to ₹60 lakh. Currently, SCSS offers an attractive interest rate of 8.2% per annum. This interest amount is credited directly to your bank or post office account every quarter. The tenure of this scheme is 5 years. After this, you can extend it for another 3 years.
Know how much you can earn each month
The income from investing in SCSS directly depends on your invested principal. For example, if an individual invests a maximum of ₹30 lakh at the current interest rate of 8.2%, they will receive a fixed annual income of ₹246,000. Thus, they can earn a fixed income of approximately ₹20,500 per month. Similarly, an investment of ₹15 lakh will generate an annual income of ₹123,000, or a fixed monthly income of approximately ₹10,250.
Tax Benefits and Withdrawal Rules
Investing in SCSS comes with tax benefits, but interest is taxable. Investments up to ₹1.5 lakh in this scheme are eligible for deduction under Section 80C. Interest income earned from SCSS is fully taxable. If your annual interest income exceeds ₹50,000, TDS (Tax Deducted at Source) will be deducted. If an investor wishes to withdraw funds before 5 years, they will be required to pay a penalty of 1% to 2%.
How and where to open an account
You can easily open an SCSS account. The process is simple. You can open this account at any post office or registered bank. To open an account, you will need to submit your Aadhaar card, PAN card, passport-size photo, and proof of the source of the investment.