Post Office Scheme: In the early stages of life, there are many ways to earn money, but after retirement, the situation changes completely. At that time, there is no monthly salary, nor is there much scope for taking risks. In such a situation, there is a need for a plan that is safe, hassle-free, and provides a guaranteed income every month or at a fixed interval.
This is why most senior citizens stay away from the stock market or high-risk investments and rely on government schemes. The Post Office Senior Citizen Saving Scheme (SCSS) is a strong example of this trust.
What is the Senior Citizen Saving Scheme?
The Post Office Senior Citizen Saving Scheme is a government scheme specifically designed for retired people. The government provides a complete guarantee on the investment, ensuring that the money is completely safe. The objective of this scheme is to provide senior citizens with a stable income in the form of regular interest after retirement, so that they do not have to face financial stress.
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Why is it considered a zero-risk scheme?
SCSS is not affected by market fluctuations. There is no fear of the stock market falling, nor any worry about a financial crisis. Once the money is deposited, income is received at a fixed interest rate. This is why many people consider it even safer and more reliable than bank fixed deposits.
Strong returns with 8.2 percent interest
Currently, the Senior Citizen Saving Scheme offers an annual interest rate of 8.2 percent, which is higher than most bank FDs. The special thing is that the interest rate received at the time of opening the account remains applicable for the entire maturity period. This means that even if interest rates change in the future, your returns will not be affected.
Start with a small investment and get tax relief
An account in this scheme can be started with just ₹1000. In addition, the investment made in this scheme also helps in saving taxes. Under Section 80C of the Income Tax Act, an annual tax exemption of up to ₹1.5 lakh can be availed on the investment. However, the interest earned from this scheme is added to your income and is subject to tax.
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Who can invest?
Any Indian citizen aged 60 years or older can invest in the SCSS. Husbands and wives can also open a joint account. In some special cases, the age limit is relaxed. For example, individuals who have taken voluntary retirement can avail of this scheme between the ages of 55 and 60, and retired defence personnel can benefit from it from the age of 50.
Rules for premature closure
The Senior Citizen Savings Scheme has a maturity period of 5 years. It is necessary to maintain the investment for this entire period to receive the full benefits. If an investor closes the account prematurely, a penalty is levied. After maturity, the account can be extended for another 3 years.
How to get a monthly income of ₹20,500
If a senior citizen invests the maximum amount of ₹30 lakh in this scheme through a joint account, at an annual interest rate of 8.2 percent, they will receive approximately ₹2,46,000 per year. This amount is paid quarterly, amounting to approximately ₹61,500. If calculated on a monthly basis, this translates to a regular and secure income of approximately ₹20,500, without any risk.
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