SCSS- Good news for everyone. Especially this article is made for old people. If you have a fixed income every month after retirement, life seems more relaxed. At such times, schemes that provide safe investment and guaranteed returns become very important. Post Office Senior Citizen Savings Scheme is one such government scheme, which not only gives a good interest rate, but also assures tax savings and regular income. This scheme is specially designed for those senior citizens who want a fixed income every month on their savings after retirement without any risk.

What is SCSS?

SCSS is a safe savings scheme which is currently offering 8.2% annual interest, which is higher than the fixed deposits of many banks. You can start investing in it with just Rs 1,000, and can deposit a maximum of Rs 30 lakh.

Who can invest?

  1. Any person who is 60 years of age or above can invest money in this scheme.
  2. If a government employee has taken voluntary retirement between the age of 55 to 60 years, he is also eligible.
  3. Retired defence personnel can invest between the age of 50 and 60 years.
  4. You can also open a joint account with your wife/husband.

How much will you earn every month?

If a person invests Rs 30 lakh in this scheme, he will get an interest of about Rs 2.46 lakh every year. This money comes into the account every three months, i.e. a regular income of about Rs 20,500 per month is assured.

If you invest Rs 20 lakh, then the total return including interest will be around Rs 28.2 lakh in five years. During this period, you will earn around Rs 41,000 every three months, i.e. Rs 13,666 per month.

Tax relief too

Through SCSS, you can also get tax exemption of up to Rs 1.5 lakh annually under section 80C.

Timing and rules

This scheme is for 5 years, which can be extended by 3 years.

If you close the account before one year, no interest will be given.

1% interest will be deducted if closed between 2 to 5 years.

Why is SCSS a good option?

Government guarantee, good interest rates, tax savings and fixed income all make SCSS a reliable and profitable deal for retired people. If you want a stable income after retirement, this is the best option for you.