Post Office SCSS: Many people worry about the certainty of regular income after retirement. The Post Office Senior Citizen Savings Scheme (SCSS) can eliminate that worry to a great extent. By investing in this scheme, senior citizens can safely get good interest. If you invest the right amount, you can earn up to 2 lakh 46 thousand taka per year.
This scheme is mainly designed for people aged 60 years and above. Retired workers can also invest in it under certain conditions. Here, you can deposit a lump sum and earn regular income through interest. The initial term is 5 years, but if you want, you can extend it later.
How to earn in this scheme
If you deposit money in SCSS, interest is paid at a fixed rate. This interest is the investor’s income. The account is initially opened for 5 years. If you want, you can take an extension for another 3 years at the end of the term.
Three major advantages of this scheme
The biggest advantage of this scheme is the high interest rate. In addition, since it is a government scheme, the security of the deposited money is ensured. The third advantage is income tax exemption, which is especially beneficial for retirees.
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How much money can be invested
A minimum of Rs 1,000 can be invested in this scheme and a maximum of Rs 30,00,000 can be invested. Currently, the interest rate on SCSS is 8.2 percent.
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How is it possible to earn Rs 2.46 lakh per year
If someone invests a maximum of Rs 30 lakh, then the total interest will be around Rs 12,30,000 at a rate of 8.2 percent in 5 years. If this interest is divided over 5 years, it is possible to earn around Rs 2,46,000 per year.
You will receive interest quarterly
Interest is paid in this scheme once every three months. If you invest Rs 30 lakh, you will get an interest of around Rs 61,500 per quarter. If you take it as a monthly income, the income will be around Rs 20,500.
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Tax benefit rules
If you invest in SCSS, you get tax exemption under section 80C of the Income Tax Act. However, you will have to pay tax on the interest received. TDS can be deducted if the interest amount exceeds a certain limit.
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How many times can the term be extended
After the expiry of the 5-year term, this account can be extended once for 3 years. An extension must be taken by submitting a specific form to the post office within 1 year of the expiry. The interest rate specified at that time will also be applicable for the extended term.