Everyone saves a part of their income to get good returns in the future. Post Office savings schemes are very popular for this. There are schemes for everyone – children, youth, women, and senior citizens. The Post Office Senior Citizen Savings Scheme is one of them. By investing in it, you can earn Rs 20,500 per month from interest alone. It also offers tax benefits. Let’s know more about it.
The Post Office Senior Citizen Savings Scheme is very popular. It gives a monthly income of more than Rs 20,000 with a one-time investment. It helps provide financial security after retirement and ensures regular monthly income. The current interest rate is 8.2%. It also offers tax exemption. This scheme gives a higher interest rate than most bank fixed deposits. The government provides income tax benefits of up to Rs 1.5 lakh under Section 80C.
Age Limit for Investment
Investing in this government scheme can help ensure a comfortable old age without financial problems. Anyone aged 60 years and above can open a single or joint account. People aged 55 to 60 who have taken VRS from government jobs, or people aged 50 to 60 who have retired from defense services (Army, Air Force, Navy, or other security forces) can also open an account.
Earn Rs 2.46 Lakh Per Year
Now, let’s see how much you can earn from this Post Office scheme. If you invest Rs 30 lakh in a one-time deposit, the government-set interest rate of 8.2% will give an annual interest of Rs 2.46 lakh. This means you will get around Rs 20,500 per month. The tenure of this scheme is 5 years.
Account Closure Rules
You can open an account at any nearby post office. Investors can also close the account anytime after opening it. But there are some rules:
- If you close the account within 1 year, you will not get any interest.
- If you close it after 1 year but within 2 years, 1.5% of the interest will be deducted.
- If you close it after 2 years but before 5 years, 1% of the interest will be deducted.