Post Office Pension Scheme: After retirement, everyone desires to live a comfortable life without any financial worries. If a fixed amount is automatically credited to your bank account every month, life in old age becomes much easier. For people aged 60 years and above, the Post Office Senior Citizen Savings Scheme (SCSS) is a reliable option. This is a government-backed scheme, and investing in it is hassle-free. Senior citizens can generate a fixed income of more than Rs. 20,000 every month by investing in this scheme. It is not affected by market fluctuations, and interest is paid on time.
Who can invest in SCSS?
📌 Also Read: New tax law to take effect from this date, find out the major changes
People aged 60 years and above can invest in this scheme. Those who retired between the ages of 55 and 60 are allowed to open an account within one month of retirement. Those who have taken the VRS (Voluntary Retirement Scheme) can also invest in it even if they are above 50 years of age. An individual can invest a maximum of Rs. 30 lakh, while a married couple can deposit up to Rs. 60 lakh in a joint account. The minimum investment starts from Rs. 1,000. The scheme has a tenure of 5 years, which can be extended by another 3 years.
Read Here: Tata Nexon EV 2026 vs Mahindra XUV400 2026 vs MG ZS EV 2026 – Range, Charging and Price
📌 Also Read: LIC Launches New Scheme, Offering Lifetime Cover With a Single Premium, Also Guaranteed Savings
How much interest is paid on SCSS?
Currently, the Senior Citizen Savings Scheme offers an annual interest rate of 8.2%. This interest rate is determined by the government and is reviewed every quarter. The interest amount is credited directly to the bank or post office account every three months. This interest can be reinvested.
📌 Also Read: Good News for Farmers! Government is Providing Subsidies for Makhana Cultivation, Know How to Apply
The special feature of this scheme is that investing in SCSS also provides tax benefits. Tax exemption of up to Rs. 1 lakh can be availed on the invested amount under Section 80C. However, the interest earned is taxable. If the annual interest exceeds Rs. 50,000, TDS (Tax Deducted at Source) is also deducted. How much pension will you receive every month?
If a person invests Rs 15 lakh in this scheme, they will earn approximately Rs 1.23 lakh in interest annually at an interest rate of 8.2%. Dividing this by month, it translates to a fixed monthly income of approximately Rs 10,000 to Rs 11,000. If a larger amount is invested, this income can exceed Rs 20,000. This income is completely fixed and does not fluctuate with market conditions.
📌 Also Read: Business Idea - Start These 4 Smart Businesses in 2026 with an Investment of Less Than 10,000 Rupees, Earn a Great Income Every Month
How to open an SCSS account?
📌 Also Read: Silver Price Drop - Silver Falls by Rs 5,600/kg, Gold Drops Rs 1,100, Check Latest MCX & City-Wise Rates
A Senior Citizen Savings Scheme account can be easily opened at any post office or authorised bank. You will need to provide your Aadhaar card, PAN card, passport-sized photograph, and investment details. However, if the money is withdrawn before the 5 years, a penalty is levied. A 2% penalty is charged for withdrawals within one year, and a 1% penalty is charged for withdrawals after one year but before 5 years. Therefore, this scheme is considered suitable for long-term investments.