Post Office Senior Citizens Savings Scheme: Many Post Office schemes help people become wealthy. People fulfil their dream of earning money by investing in small and large schemes. You can earn high interest by investing in small savings schemes. You must have heard of the Senior Citizen Scheme. This scheme offers a bumper interest rate. Currently, the Senior Citizen Scheme offers an interest rate of 8.2 per cent. You can get a strong return with a small investment in this scheme. How much money can you invest in the Senior Citizen Scheme? You can find out more about the scheme in the news below.
How much can you invest?
The Post Office Senior Citizen Scheme is sufficient to provide good returns. You can invest a minimum of Rs. 1000 in this scheme. The maximum investment limit is Rs. 30 lakhs. Investments made in this scheme are eligible for tax exemption under Section 80C of the Income Tax Act. The interest earned is taxable.
Only individuals above 60 years of age can open an account in this Post Office scheme. Retired employees from the civil and defence sectors who have taken VRS are given an age relaxation for entry into the scheme. For the defence sector, this age is between 50 years and less than 60 years. A joint account can also be opened in the Post Office Senior Citizen Scheme.
Know the Maturity Period
The maturity period of the Post Office Senior Citizen Scheme is 5 years. Investors can extend this period in blocks of 3 years. A form also needs to be submitted at the Post Office. Premature closure of this account is also possible. The investor will have the opportunity to extend this period in blocks of 3 years.
You will also have to submit a form at the Post Office. If you close the account before 1 year for any reason, you will not receive any interest. Even if interest has been credited to your account, that amount will be deducted from the principal. If the account is closed after one year but before two years, an amount equal to 1.5 per cent of the principal will be deducted.
How much profit on an investment of 25 lakhs?
Investing ₹25 lakhs in the Post Office Senior Citizen Scheme will yield significant returns. This scheme allows you to extend the account for another three years after the initial five-year period. In this case, you will receive ₹51,250 in interest every three months for eight years. This way, you can earn a total of ₹16,40,000 in interest over eight years. Additionally, you will receive your principal amount of ₹25 lakhs back at maturity.