Senior Citizens Saving Scheme: After retirement, there’s no regular income. Your savings are crucial during that time. Every senior wants their hard-earned income to be secure and generate good returns. This will ensure a comfortable old age. If you’re looking for a scheme that offers guaranteed returns without any risk, there’s no need to worry. The Post Office is offering a great scheme, offering good returns without any risk.
We’re talking about the Post Office Senior Citizen Scheme, designed specifically for the elderly. The special feature of this scheme is that it offers higher interest rates than fixed deposits. Your money is 100% safe. Learn how you can earn up to ₹12.30 lakh in 5 years with the Senior Citizen Savings Scheme.
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Learn the details of the Senior Citizen Savings Scheme
The Senior Citizen Savings Scheme is government-backed. This scheme is available for citizens over the age of 60. It is a type of deposit scheme. A lump sum investment can be made in this scheme for 5 years, and the government provides a monthly guaranteed interest on it.
Currently, an annual interest rate of 8.2% is available. You can invest just ₹1,000 in this scheme. The maximum investment allowed is ₹30 lakh, yielding an interest rate of ₹12.30 lakh. Let’s explore the calculation.
If you invest ₹30 lakh annually, you will receive a total interest rate of ₹12.30 lakh over 5 years at an 8.2% interest rate. Consequently, you will receive a total interest rate of ₹42.30 lakh upon maturity.
Who can invest in the scheme?
Anyone 60 years of age or older can easily invest in this scheme. Civil sector government employees taking VRS and those retiring from the defense sector are exempted from the age limit, subject to certain conditions.
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How much tax benefit is available?
Investing in the Senior Citizen Savings Scheme provides a tax benefit of up to ₹1.5 lakh under Section 80C of the Income Tax Act. The interest earned under this scheme is taxable. If the interest amount exceeds ₹1 lakh in a financial year, TDS is deducted. It can be extended up to ₹1 lakh of maturity. The extended account earns interest at the applicable rate on the maturity date.