If you want the safest and most regular monthly income after retirement, backed by a government guarantee, the Post Office Senior Citizen Savings Scheme (SCSS) is the best investment option for you! This scheme offers an interest rate of over 8.2%, much higher than bank FDs. Learn how you can earn a guaranteed income of ₹20,500 per month by investing up to ₹30 lakh, and also benefit from a significant tax deduction of up to ₹1.5 lakh under Income Tax Section 80C. This scheme eliminates financial stress after retirement forever.
Guaranteed Monthly Income After Retirement
The Post Office Senior Citizen Savings Scheme (SCSS) is one of the most popular savings schemes of the Post Office, specifically designed to meet the monthly income needs of senior citizens. This scheme provides a fully guaranteed regular monthly income on a lump sum investment. By making a large investment in this scheme, you can ensure a monthly income of over ₹20,000, making life easier and financially stress-free after retirement.
Significant Interest Rate and Tax Benefits
This post office scheme offers a great combination of high returns and tax benefits. The government offers an attractive annual interest rate of 8.2% on deposits under this scheme. This interest rate is much higher than fixed deposits (FDs) offered by almost all banks, ensuring higher returns. Furthermore, investments made under this scheme also qualify for an income tax exemption of up to ₹1.5 lakh under Section 80C of the Income Tax Act. The maturity period of this scheme is 5 years.
Age Limit and Eligibility for Investment
By investing in this government scheme, you can live a comfortable old age without any financial problems. Regarding the age limit for this scheme, anyone aged 60 years or above, whether single or joint, can open an account. Additionally, there are some special categories: Individuals aged 55 to 60 who have taken VRS (voluntary retirement) from government positions in the civil sector can also open an account. Additionally, individuals aged 50 to 60 who have retired from the defense sector (Army, Air Force, Navy, and other security forces) can also invest in this scheme.
How to Earn ₹2.46 Lakh Annually from Home
Now, let’s discuss how to earn a regular monthly income by investing in this post office scheme. Suppose you invested a lump sum of ₹30 lakh. At the government-set interest rate of 8.2%, you would earn ₹2.46 lakh annual interest on this investment. If this amount is divided monthly, you are assured of a guaranteed income of ₹20,500 every month. This income is a significant help in meeting your financial expenses for the entire 5 years.
Premature Account Closure Facility
An account under the Post Office SCSS scheme can be opened at any nearby post office branch. Investors are also given the option to close the account at any time after opening, if needed, although there are some rules for this. If the account is closed within less than one year from the date of opening, no interest will be paid on the deposit.
If it is closed after one year or between two years, 1.5% will be deducted from the interest amount. Similarly, if the account is closed between two and five years, 1% will be deducted from the interest amount. This feature makes the scheme flexible, but it is better to wait until the maturity period is over to avoid losses.