New Delhi: The Senior Citizens Savings Scheme offers opportunities for individuals to become wealthy. This scheme is for the elderly, and benefits begin after the age of 60. If you want secure returns after retirement, this is a great opportunity. You can start investing by opening an account under the Senior Citizens Savings Scheme, without any hassles.
You can open an account under this scheme at the post office. This provides a secure investment, along with future benefits. This means there will be no hassles. Investors will also receive bumper interest. The term of the scheme is set at 5 years. Learn important points related to the Senior Citizens Savings Scheme in the article below.
How much interest will you receive?
The Central Government’s Senior Citizens Savings Scheme is a public welfare scheme. Currently, this scheme offers an interest rate of 8.2%. The term limit for this scheme is set at 5 years, with the option to extend it by 3 years. Interest is credited to the account every three months.
You can invest a minimum of ₹1,000 to a maximum of ₹30 lakh in the Senior Citizens Savings Scheme. You can earn substantial benefits after investing. You can also close the scheme within two years, but you will incur a penalty. The essential aspects of the scheme are detailed below. This will clear up any confusion.
Scheme Key Points
If, for any reason, a person wishes to close the scheme before two years, they will incur a 1.5% penalty. Withdrawals between 2 and 5 years will incur a 1% penalty. If an investor extends the scheme beyond three years, they can withdraw without penalty after the first year is over. Furthermore, if the extension is not completed and they wish to withdraw, they will incur a 1% penalty.
Suppose a person invests ₹5 lakh in the scheme, they will receive approximately ₹25,000 in interest after five years. This means the total amount will be ₹750,000. To join the scheme, senior citizens will need to submit their PAN card, Aadhaar card, age proof, and two passport-size photographs to the post office. With these documents, your account will be opened easily.