Senior Citizen Savings Scheme: Every individual saves some of their income and wants to invest it in a risk-free and stable income. This trust has long made Post Office government schemes a popular choice in India. Especially after retirement, when regular salaries cease, the need for such schemes increases. The Post Office Senior Citizen Savings Scheme is a reliable scheme designed with this need in mind.
Government-Guaranteed Zero Risk Scheme
The Senior Citizen Savings Scheme is considered a completely safe investment because the Government of India takes responsibility for the safety of the deposits. This is why it is called a zero-risk scheme. This scheme currently offers an interest rate of 8.2% per annum, which is higher than the fixed deposit rates of many banks. It is a strong option for elderly investors looking for safe returns.
Low investment and tax benefits
Opening an account under this scheme does not require a large amount. Investments can be started with just ₹1,000. The maximum investment limit is ₹30 lakh. Investments also offer tax savings. Tax deductions of up to ₹1.5 lakh per year are available under Section 80C of the Income Tax Act, making this scheme even more attractive.
Who can invest?
Anyone aged 60 years or above can open an account under the Senior Citizen Savings Scheme. Joint accounts in the name of husband and wife are also available. The age limit is relaxed in certain special cases. Employees who have taken voluntary retirement can invest between the ages of 55 and 60, while defence service retirees can avail of this scheme between the ages of 50 and 60.
Maturity Period and Interest System
The maturity period of this scheme is 5 years. Interest earned on investments is paid directly to the account holder every three months. If an individual closes the account before the stipulated period, a penalty is imposed as per the rules. In the event of the account holder’s death, the account is closed, and the entire amount is transferred to the nominee.
How to Earn ₹17,000 Monthly
Senior Citizen Savings Accounts can be easily opened at any nearby post office. An individual can invest up to ₹15 lakh in a single account and up to ₹30 lakh in a joint account. If an investor invests ₹25 lakh in a joint account, the annual interest rate of 8.2% earns approximately ₹2.05 lakh. This amounts to approximately ₹51,250 on a quarterly basis. This generates a regular monthly income of over ₹17,000, which continues for a full five years. Upon maturity, the investor can withdraw their principal or extend the account.
Related Posts
Adarsh P
Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...
Related Stories
Business
Business
latest news
Gadgets
Gadgets
India
Auto
Business
Gadgets
Business