The concern for a regular income after retirement becomes a major issue for everyone. A monthly salary during employment helps maintain life, but this income ceases after retirement. In such a situation, savings become the foundation for the future, and people look for a scheme that provides a fixed monthly payment, similar to a salary. Keeping this need in mind, the Post Office has developed a highly profitable investment option for senior citizens.
Read More- Best Nothing Phones Under Rs 20,000 in India : Phone (2a), New Budget Model & CMF Lineup Explained
What is the Post Office’s SCSS Scheme?
For the past several years, the Postal Department has been running the Senior Citizen Savings Scheme. This scheme is specifically designed for those who want a stable income after retirement. The government provides senior citizens with an interest rate of 8.2 per cent per annum on investments in this scheme. This rate is much higher than many other savings and fixed deposit options, making it a highly reliable option for post-retirement income.
Tax exemptions and attractive interest benefits
The government not only offers attractive interest rates on this scheme, but also provides tax benefits of up to ₹1.5 lakh under Section 80C. This means that this investment is not only safe and stable, but also serves as a tax-saving tool. This benefit further strengthens the financial security of senior citizens.
How much profit will be earned on an investment of ₹30 lakh?
If a person invests ₹30 lakh in this scheme, they will receive an interest of approximately ₹2.46 lakh per year at an annual interest rate of 8.2 per cent. When this amount is divided over months, it generates a regular income of approximately ₹20,500 per month. This scheme thus becomes a strong financial support for managing monthly expenses after retirement. The scheme has a maturity period of 5 years, and during this period, interest is transferred directly to the bank account.
Who can avail the benefits of this scheme?
Eligibility for this scheme is limited to individuals aged 60 years and above. However, those who voluntarily retired between the ages of 55 and 60 can also benefit from this scheme. They simply need to submit their retirement documents. The application process is very simple, and an SCSS account can be opened by visiting the nearest post office.
Read More- Vehicle Fitness Test Fees Hiked: Check the Latest Government Regulations
What is required to open an account?
An Aadhaar card, PAN card, age proof, and two passport-size photographs are required to open an account. If a person retired before the age of 60, they must also submit income-related documents provided by the department. After this, investments can be made from a minimum of ₹1,000 to a maximum of ₹30 lakh.