Post Office Scheme: Arranging a regular income after retirement is a major concern for every senior citizen in India. The Post Office Senior Citizen Savings Scheme (SCSS) addresses this issue. This government-guaranteed scheme is currently in the news because it offers higher interest rates than bank fixed deposits and also guarantees a monthly income after retirement.
Who can avail of the scheme?
This Post Office scheme is primarily designed for individuals aged 60 and above. Employees who have taken voluntary retirement (VRS) between the ages of 55 and 60 can also open an account. Individuals who have retired from the Army, Air Force, Navy, or other security forces between the ages of 50 and 60 are also eligible. Accounts can be opened easily by submitting the required documents to your nearest post office.
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Monthly fixed income with 8.2% interest
The government currently offers an annual interest rate of 8.2% on this scheme. A minimum investment of ₹1,000 and a maximum of ₹30 lakh can be made. If an individual deposits the maximum amount, i.e., ₹30 lakh, they will earn an annual interest rate of approximately ₹2.46 lakh. Consequently, they will receive a fixed income of approximately ₹20,500 per month. This is why this scheme provides pension-like assurance to retired individuals.
Premature Account Closure Facility
If, for some reason, the account must be closed before maturity, this option is available. Interest is not accrued if the account is closed before one year. If closed within one to two years, 1.5% interest is deducted, and if closed between two and five years, 1% is deducted.
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Tax Rules on Interest
If the annual interest earned on the account exceeds ₹50,000, TDS may be deducted. However, TDS will not be deducted if Form 15G or 15H is submitted. Government protection, high interest rates, and a guaranteed monthly income—all these factors make this scheme one of the most reliable investment options for senior citizens after retirement.