Post Office SCSS: A Great Savings Scheme for Senior Citizens
The Post Office has introduced a fantastic savings scheme for senior citizens called the Senior Citizens Savings Scheme (SCSS). This scheme offers investors guaranteed returns and a secure investment. The Post Office’s Senior Citizens Savings Scheme is quite popular and provides a interest rate of 8.2% to investors.
Key Features of the Scheme
- You can open an account with just ₹100.
- The maximum investment amount allowed is ₹30 lakh.
- The interest rates change every quarter.
If you are planning for retirement, the SCSS can be the best option for you. This is because it offers guaranteed returns on your investment. It also falls under Section 80C for tax benefits. Regarding the interest rates, they change every quarter.
Returns on ₹10 Lakh Investment in 5 Years
If you invest ₹10 lakh in the Post Office’s Senior Citizens Savings Scheme, you will receive an interest rate of 8.2% for 5 years. This will provide you with a compounded return of up to ₹4,10,000 over the 5-year period.
After that, you will have earned a total of ₹14,10,000. Based on calculations, you will receive ₹20,500 as interest every quarter on your investment.
Benefits of the Post Office’s SCSS
The account under this scheme can be transferred anywhere in the country. The scheme provides a tax benefit of ₹1.5 lakh per year under Section 80C. The interest payment can be made on a quarterly basis.
The interest is credited to your account before April, July, October, and January. Senior citizens above the age of 60 receive benefits. Citizens between the ages of 55 and 60 can also opt for Voluntary Retirement Scheme. Retired individuals below the age of 50 are also eligible for the scheme’s benefits.
