Not having a regular source of income after retirement becomes a big challenge. At such times, a savings plan with safe and guaranteed returns is the most reliable option for the elderly. If you also want to keep your money safe and get good returns, then Post Office Senior Citizen Savings Scheme can prove to be a great option for you. SCSS is a savings scheme launched by the Government of India for senior citizens. Investment in these scheme can secure your old age. But before making any investment, make sure to go to your nearest Post Office for more details.
It is designed for citizens aged 60 years and above. In this scheme, you deposit a lump sum and the government gives you guaranteed interest every three months. The major advantage of this scheme is that it gives more interest than bank FD and your money is completely safe.
Interest rate and investment limits
• Current interest rate: 8.2% per annum
• Minimum investment: 1,000 rupees
• Maximum investment: 30,00,000 rupees
How to earn 12.3 lakhs in 5 years?
Suppose a senior citizen invests a maximum amount of Rs 30,00,000 in SCSS.
• Annual interest = 30,00,000 × 8.2% = Rs 2,46,000
• Total interest in 5 years = 2,46,000 × 5 = Rs 12,30,000
• Interest is credited to your account every three months. That means you will get Rs 61,500 every quarter.
• In this way the total amount on maturity of 5 years will be Rs.42,30,000.
Who can invest?
Anyone aged 60 years or above can invest in SCSS. Government employees taking voluntary retirement and those retired from defense services can invest with relaxation in age limit.
Investment in SCSS is eligible for tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Note, interest earned from SCSS is taxable. If the interest exceeds Rs.1,00,000 in a financial year, then TDS will be deducted.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.