After retirement, people want to invest their money in a place where their principal amount — their hard-earned money — remains completely safe. The Senior Citizen Savings Scheme is a good option for this. It is a small savings scheme supported by the Government of India. You can open this account at any post office or authorised branch of a government or private bank. There is no risk of losing your money in this scheme. The government gives a full guarantee on both your principal and the interest earned.

Safe Investment for Senior Citizens

After retirement, people want to keep their money in a safe place. They want to make sure their hard-earned money is not lost. The Senior Citizens Savings Scheme (SCSS) is a good option. The Government of India runs it. So, it is very safe. You can open this account at any post office or in some government or private banks. The government gives full guarantee on your money and interest.

In this scheme, you can invest a lump sum amount. After that, you will get regular income every month. Right now, the interest rate is 8.2% per year. The interest is paid every three months. You will get the money on 1st April, 1st July, 1st October, and 1st January. The interest goes to your savings account in the same post office. If you do not take out the interest, you will not get extra (compound) interest on it.

Monthly Income and Tax Saving

You can put up to ₹30 lakh in this scheme. If you do this, you will get ₹2,46,000 interest in one year. Every three months, you will get ₹61,500. If we divide this for each month, you will get ₹20,500. So, this is a good way to earn a monthly income after retirement.

This scheme also helps in saving tax. You can get a tax benefit up to ₹1.5 lakh in one year under Section 80C of the Income Tax Act.

It is easy to invest in this scheme. Any Indian citizen who is 60 years or older can open this account. If someone takes voluntary retirement (VRS), they can open the account at the age of 55. But they must do this within one month of retirement. Defence retired persons can open this account even at the age of 50. This scheme is safe, easy, and gives you regular money. It also saves tax. It is a good plan for senior citizens.