After retirement, a person does not have a regular income. If you have a lump sum amount, you can invest it in schemes that give regular income. This will help you get good returns. The Post Office Senior Citizen Savings Scheme can be very useful for this.

This is a post office scheme made only for senior citizens. Among all the small savings schemes of the post office, this one gives the highest interest rate. You can also open a joint account in this scheme with your husband or wife. Let us know the main features of this scheme.

Highlights of Senior Citizen Saving Scheme

  • The Post Office Senior Citizen Saving Scheme offers an 8.2% annual interest rate.
  • You need to deposit money in SCSS only once. After that, the interest amount will come to your account every three months.
  • You can deposit a minimum of ₹1000 and a maximum of ₹30 lakh in this scheme.
  • The money you invest in SCSS is eligible for tax exemption under Section 80C of the Income Tax Act. But the interest you earn is taxable.
  • Any person who is 60 years or older can open an account in this scheme.
  • You can also open a joint account with your husband or wife in SCSS.
  • The maturity period of this scheme is 5 years. You can extend it for 3 more years after that.

Who Can Open an SCSS Account?

Only Indian citizens can open an SCSS account. A person who is 60 years or older can open it. People between 55 and 60 years can also open it if they have retired. But they must open the account within 3 months after getting their retirement money. They also need to give proof of retirement and a letter from their employer.

Retired defence staff (not civilian defence workers) can open the account after turning 50, if they meet some rules. If a government worker dies in service after turning 50, their husband or wife can also open the account, but only if they meet the needed rules. Here, government worker means anyone working in central or state government who gets retirement or death benefits.

A person can open an account alone or with their husband or wife. In a joint account, the full deposit amount will be counted in the name of the first person.

How Much Can You Deposit?

The least you can deposit is ₹1000. You must deposit in multiples of ₹1000. The most you can deposit in all SCSS accounts under one name is ₹30 lakh. Both husband and wife can open single and joint accounts, and each can deposit up to ₹30 lakh if they qualify.

If someone puts more than the allowed limit, the extra money will be sent back. Till then, only the normal Post Office saving interest rate will apply on the extra money.