Post Office Savings Scheme : Arranging monthly income after retirement is a major challenge. The Post Office’s Senior Citizen Savings Scheme (SCSS) is a solid solution. Your money remains under government protection, and you don’t have to worry about market fluctuations.
8.2% interest and government guarantee
This scheme currently offers an annual interest rate of 8.2 percent. The best part is that your interest rate remains fixed for five years after investing. Interest is deposited directly into your account every three months, ensuring regular cash flow for senior citizens.
Who can invest and how much?
Citizens above 60 years of age.
You can invest a minimum of Rs 1,000 and a maximum of Rs 30 lakh.
There is also tax saving of up to Rs 1.5 lakh under Income Tax Section 80C.
Proper use of retirement funds
If you invest up to Rs 30 lakh in this scheme, you earn an annual interest of Rs 246,000. On a quarterly basis, you receive Rs 61,500 every three months. If you calculate this monthly, this equates to a monthly income of Rs 20,500. After completing 5 years, you can extend this scheme for another 3 years.
A key feature of SCSS is that the account can be closed before maturity. No interest will be paid if closed before one year. If closed within one to two years, a 1.5% interest rate will be deducted. If closed between two and five years, a 1% interest rate will be deducted.
Interest will also be taxable
If the annual interest exceeds Rs 50,000, TDS will be deducted, but this deduction will not be applicable if Form 15G/15H is filed. The post office guarantee, high interest rates, and fixed monthly income make this scheme a reliable investment option for senior citizens seeking stable income after retirement.