Post Office SCSS: After retirement, income stops, and expenses continue. This leaves everyone worried about how to meet their financial needs in the coming years. Proper financial planning becomes crucial in this situation. The Post Office Senior Citizen Savings Scheme is a reliable scheme for senior citizens, providing a steady income at a fixed rate even after retirement. This scheme has long offered significant benefits with high interest rates. Let’s explore how this scheme can be a support in your old age.

Read More- Dharmendra Net Worth – Inside the Legendary Actor’s Wealth, Properties and Last Investments

Attractive interest rates on SCSS

Currently, the Senior Citizen Savings Scheme offers an interest rate of 8.2 per cent per annum. Interest on deposits made under this scheme is transferred to your account every three months. This scheme is completely safe and, being backed by the government, has a very low investment risk. Since this scheme is designed exclusively for senior citizens, it is considered the most reliable option for a stable income after retirement.

Who can invest in this scheme?

You must be 60 years of age or older to avail of this scheme. However, certain age relaxations are available for individuals who have taken voluntary retirement from the civil and defence sectors. Employees who retired between the ages of 55 and 60 in the civil sector and 50 and 60 in the defence sector can open an account under this scheme within one month of receiving their retirement benefits. You can also open a joint account with your spouse if you wish.

Minimum and Maximum Investment Limits

The minimum deposit amount in SCSS is ₹1,000, while the maximum investment limit is ₹30 lakh. A one-time investment is made in this scheme, and interest is paid quarterly thereafter. Investors also receive tax exemption under Section 80C of the Income Tax Act, although interest earned is taxable.

Scheme Maturity and Premature Closure Rules

The Senior Citizen Savings Scheme has a 5-year term. Upon maturity, an option to extend the term by an additional 3 years is available. If, for any reason, an investor wishes to close the account prematurely, this facility is also available. No interest is paid if the account is closed within one year, and any interest earned is deducted from the principal. If the account is closed between one and two years, 1.5% of the principal is deducted, and if it is closed between two and five years, 1% of the principal is deducted. Accounts with an extended term can be closed after one year without any deduction.

Read More- Motorola Vs Vivo Budget Phones 2025 – Which Brand Gives Better Value?

Invest Together and Earn Big Interest

If you invest jointly with your spouse and deposit a total of ₹22 lakh, you can earn a quarterly income of approximately ₹45,100 every three months at an annual interest rate of 8.2%. This works out to around ₹15,000 per month, which can easily cover many of your small and regular expenses after retirement. After the five-year term, you’ll receive your entire principal of ₹22 lakh back. During this time, you’ll earn a total interest of over ₹9 lakh. If desired, this amount can be reinvested in SCSS or another regular income scheme after maturity.