To achieve any financial goal, you need a good amount of money. Whether you want to buy a house or a car, all these dreams require a big amount. It is difficult to save that much money from salary alone. That is why many people choose to invest through SIP in mutual funds, so they can reach their goals in the future.

But some people do not want to take any risks. They want a safe option where their money grows without any loss. For such people, government schemes can be very useful. We are going to tell you about one such scheme, which is part of the Post Office Small Savings Scheme. You can open this account easily at your nearest post office.

The scheme we are talking about can give you good earnings from interest alone. If you stay invested in this scheme for five years, you can earn more than ₹82,000 just from interest. Let us now understand this scheme in detail.

A Great Scheme from the Post Office

The scheme we are talking about is called the Senior Citizen Savings Scheme (SCSS). Under this scheme, you can earn a good income by depositing a one-time lump sum amount. This is a government-supported scheme specially made for senior citizens. You can also gift this scheme to your father or grandfather.

Who Can Open This Account?

This scheme is for people who are 60 years or older. The minimum investment amount is ₹1,000, and the maximum limit is ₹30 lakh. The scheme runs for 5 years, but you can extend it for 3 more years if you want.

The scheme gives an interest rate of 8.2%. Interest is fixed every three months (quarterly), and the money is paid every year.

Other People Who Can Invest

  1. Any senior citizen in India can open this account. It can be opened as a single account or a joint account.
  2. Retired civilian employees aged 55 to 60 years can also invest, but they must invest within one month of getting their retirement money.
  3. Retired defence employees aged 50 to 60 years can also invest under the same conditions.

What Happens If You Close the Account Early?

You also get tax exemption under Section 80C of the Income Tax Act for investments up to ₹1.5 lakh per year in this scheme. But if you close the account early, some rules apply:

  • If the account is closed before 1 year, you will not get any interest, and any interest paid will be taken back from the principal.
  • If the account is closed after 1 year but before 2 years, then 1.5% will be deducted from the principal.
  • If closed after 2 years but before 5 years, 1% will be deducted from the principal.
  • If the account is extended and closed after 1 year of extension, there will be no deduction.

Earn ₹82,000 from Interest Alone

If someone invests a lump sum of ₹2,00,000 in this scheme, then they can earn a big amount through interest. At an 8.2% interest rate, after 5 years, they will earn ₹82,000 from interest alone. The total amount they will get on maturity will be ₹2,82,000. They will also receive quarterly interest payments of around ₹4,099.