Senior Citizens’ Monthly Pension: Everyone wants to invest a part of their earnings in a place where their money is completely safe and also yields good returns. Especially to avoid financial difficulties after retirement, people plan their investments. Many investors also invest with the aim of securing a regular income in their old age. This is why Post Office savings schemes are considered very reliable among people.
The Senior Citizen Savings Scheme (SCSS) is specifically designed for senior citizens. Investing in this scheme offers a higher interest rate than fixed deposits of many major banks, making this scheme even more attractive.
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Secure Investment with Government Guarantee
The biggest advantage of all Post Office savings schemes is that the investments made in them are fully guaranteed by the government. Investment in the Senior Citizen Savings Scheme is also completely safe. Through this scheme, a regular income of approximately Rs 20,000 per month can be generated. Investment can be started with as little as Rs 1,000.
8.2% Interest Rate Offered
The government has fixed the interest rate in SCSS at 8.2 %. This scheme offers the benefit of tax savings along with a secure investment. A maximum of Rs 30 lakh can be invested in this scheme. The scheme proves helpful in making one financially strong after retirement.
Any person aged 60 years or older can open this account. Spouses can also open a joint account. Employees who have taken VRS can invest after the age of 55. Defence personnel who have retired can invest in this scheme after the age of 50.
Conditions for Premature Account Closure
The maturity period of the Senior Citizen Savings Scheme is 5 years. If an account holder closes the account before this period, they have to pay a penalty according to the rules. An SCSS account can be easily opened at a nearby Post Office. Investing in this scheme also provides tax exemption of up to ₹1.5 lakh annually under Section 80C of the Income Tax Act.
Calculation for ₹20,000 per month
The minimum investment in this scheme is ₹1,000, and the maximum is ₹30 lakh. The investment amount must be deposited in multiples of ₹1,000. If an investor deposits ₹30 lakh, they will receive approximately ₹2.46 lakh in interest annually at an interest rate of 8.2%. Dividing this by 12 months results in a regular monthly income of approximately ₹20,000.