Senior citizens who want a safe and stable income after retirement can use the Post Office Senior Citizen Savings Scheme (SCSS). This government-backed scheme keeps your investment safe and gives fixed monthly returns of over ₹20,000.
SCSS is for senior citizens aged 60 and above. Retirees aged 55 to 60 can join within one month of retirement. People who take Voluntary Retirement Scheme (VRS) can join at 50 years or older.
You can invest up to ₹30 lakh in a single account. A joint account with your spouse can hold up to ₹60 lakh. The minimum investment is ₹1,000. You can keep the account for five years and extend it for another three years.
Safe Monthly Income for Senior Citizens
The Senior Citizen Savings Scheme (SCSS) gives 8.2% annual interest. The government checks it every three months but does not reduce it. You can take the interest every three months and deposit it in a post office or bank. You can renew the scheme after it matures. The interest is taxable, but you can get a deduction of up to ₹1 lakh under Section 80C. TDS applies if interest is more than ₹50,000.
For example, if you invest ₹15 lakh, you get about ₹11,750 per month. This income is fixed and does not change with the market. You can use your provident fund or gratuity money for SCSS to feel secure after retirement.
You can open SCSS at any post office or bank. You need Aadhaar, PAN, a photo, and proof of money source. The scheme is safe, but there is a 1% penalty if you withdraw before five years and 2% in the first year. SCSS is best for long-term planning.
SCSS is good for elderly people because it gives fixed monthly income for family and health expenses.