Retirement Plan: Life becomes more difficult after retirement, so people look for a source of regular income. If you’re among them, you needn’t worry. The Post Office has made arrangements for a regular income after retirement. The Senior Citizen Savings Scheme is operated by the Post Office. Under this scheme, people receive a regular income along with a substantial amount at maturity.
The Senior Citizen Savings Scheme is a reliable savings scheme run by the Government of India, specifically designed to meet the needs of retired citizens. The scheme aims to provide financial security after retirement and a stable source of regular income. Since it’s a government-backed scheme, there’s no risk involved.
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Who Can Invest?
All Indian citizens aged 60 years or older can invest in this scheme. Additionally, individuals aged 55 to 60 who have taken voluntary retirement or superannuation are also eligible, provided they open an account within the prescribed timeframe.
What is the investment limit and tenure?
The minimum investment amount in the Senior Citizen Savings Scheme is ₹1,000, while the maximum limit is ₹30 lakh. The original term of the scheme is 5 years, which can be extended for 3 years after maturity.
What is the interest rate?
Currently, this scheme offers an annual interest rate of 8.2%. Interest is paid directly into the investor’s account every three months. The government reviews interest rates quarterly. Investing in this scheme also provides tax benefits under Section 80C of the Income Tax Act. However, tax is applicable on the interest earned.
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Where and how to open an account?
A Senior Citizen Savings Scheme account can be opened at any post office or authorised bank branch in the country. The process is simple, and the account can be opened easily with the required documents.