If you or your parents want to invest for retirement and also want a safe investment with good returns, then the Post Office Senior Citizen Savings Scheme can be a good option.
After retirement, when there is no regular income, people often look for a scheme that gives fixed income every month. The Senior Citizen Savings Scheme of the Post Office meets this need. By investing in this scheme, you can get a regular income of up to ₹20,000 every month — that too without any risk.
Who Can Invest in This Scheme?
This government scheme is specially made for senior citizens. People who are 60 years or older can open an account in this scheme. If a government employee takes voluntary retirement (VRS) between the age of 55 and 60, they can also apply. Retired defence sector employees (Army, Air Force, Navy) can join this scheme from the age of 50.
Safe Investment with Good Returns
Post Office SCSS currently gives 8.2% annual interest, which is higher than the interest offered on fixed deposits by most banks. This scheme is backed by the government, so the investment is completely safe. You also get tax benefits of up to ₹1.5 lakh under Section 80C of the Income Tax Act. However, the interest earned is taxable.
How to Get ₹20,000 Monthly Income
If you invest ₹30 lakh in this scheme, you will get ₹2.46 lakh as yearly interest at 8.2% rate. This means you will receive around ₹20,500 every month. This regular income can help you meet your needs after retirement. You can invest a minimum of ₹1,000 and a maximum of ₹30 lakh (in a single or joint account). The scheme has a maturity period of 5 years, which can be extended for 3 more years.