The primary need of people in old age is to ensure their money is completely safe and to receive a fixed monthly payment. The Senior Citizen Savings Scheme (SCSS) offered through the Post Office provides this assurance to senior citizens. Low risk, fixed interest, and a government guarantee are key features of this scheme, making it an excellent investment option after retirement.
What is the Senior Citizen Savings Scheme
The Post Office Senior Citizen Savings Scheme (SCSS) is specially designed for people aged 60 and above. Investments made in this scheme are guaranteed by the government, which means your money is completely safe. This scheme is ideal for those who want a regular income after retirement without any risk. You can start investing with as little as ₹1,000.
Interest Rate and Government Guarantee
This scheme currently offers an excellent interest rate of 8.2% per annum, which is higher than most bank FDs (Fixed Deposits). Its most unique feature is that the interest rate is fixed and unaffected by market fluctuations. The government guarantee provides complete confidence to investors, ensuring reliable returns for senior citizens.
Get a regular income of ₹20,000 every month
If a senior citizen invests a maximum of ₹30 lakh in this scheme, they can earn approximately ₹2.46 lakh per year at a rate of 8.2%. If you spread this income monthly, you will receive a regular income of approximately ₹20,000, which is very helpful for retirement expenses.
Interest is paid quarterly, not monthly. The interest amount is credited directly to your account in April, July, October, and January. You can choose to spend this amount or use it for reinvestment.
Tax Benefits and Maturity Period
Investing in this scheme offers a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. The account has a maturity period of 5 years, although a penalty may apply for premature closure. SCSS is a powerful financial tool for senior citizens, ensuring a secure and worry-free retirement.