Post Office Scheme– If you are a senior citizen and want a better savings scheme with good returns, then the Post Office Senior Citizens Savings Scheme (SCSS) can prove to be a better option for you. Being a post office scheme, your money is safe in it. This scheme is for senior citizens. However, in this scheme, civil sector government employees taking VRS and people retiring from defense are being given relaxation in age limit with some conditions.

A person investing in SCSS is given an annual tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. A joint account can be opened with any person aged 60 years or above or with spouse. Savings schemes are being run in different categories for every age group in the post office. In which safe investment is guaranteed by the government.

Who can invest?

In Senior Citizen Saving Scheme, any person whose age is 60 years or more can open their account in this scheme. Along with this, people who have taken VRS from government posts in the civil sector, whose age is between 55 to 60 years and have retired from the defense sector i.e. Army, Air Force, Navy and other security forces, can also open a single or joint account under this scheme at the age of 50 to 60 years. The maturity of this scheme is 5 years. In this, tax exemption is available on investment of Rs 1.5 lakh under Section 80C of Income Tax.

The interest rate is higher than FD

In this scheme, senior citizens can invest a minimum of Rs 1,000. At the same time, they can invest a maximum of Rs 30 lakh. Earlier, the maximum investment limit was Rs 15 lakh. In this scheme, investors get an interest rate of 8.2 percent. Usually, most banks are offering 6% to 7% interest rate to senior citizens. In such a situation, it offers much higher interest than the FD of banks.

There is no risk in investments made in the post office. If a person invests about Rs 30 lakh in this scheme, he will get an annual interest of Rs 2.46 lakh and if this interest is calculated on a monthly basis, it comes to about Rs 20,000 per month.

 

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