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Post Office SCSS: Invest Rs1,000 and Earn Regular Income Safely

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The Senior Citizens Savings Scheme (SCSS) offered by the Post Office is a secure, government-backed investment plan, specifically designed for retirees and senior citizens. It guarantees regular income with attractive returns, making it one of the highest interest-paying savings schemes in India.

Key Features of the SCSS Scheme

  1. High Interest Rate:

    • Currently offers 8.2% annual interest (paid quarterly).
  2. Eligibility:

    • Individuals aged 60 years or above.
    • Retirees aged 55-60 years who have taken Voluntary Retirement Scheme (VRS).
    • Retired defense employees aged 60+ years.
    • HUFs and NRIs are not eligible.
  3. Investment Limits:

    • Minimum: ₹1,000
    • Maximum: ₹30 lakh (in one account).
  4. Maturity Period:

    • Fixed tenure of 5 years, with an option to extend for another 3 years.
  5. Account Type:

    • Open a single account or a joint account (only with a spouse).
  6. Tax Benefits:

    • Up to ₹1.5 lakh tax exemption under Section 80C of the Income Tax Act.
  7. Safety:

    • Backed by a sovereign guarantee, ensuring complete safety of your principal and returns.

How You Can Earn ₹31,000 Every Quarter

  • Maximum Investment: ₹30 lakh
  • Interest Rate: 8.2% per annum
  • Quarterly Payout: ₹30,750
  • Annual Payout: ₹1,23,000
  • Total Payout over 5 years: ₹6,15,000

This makes SCSS an ideal plan for senior citizens looking for consistent income.

Premature Withdrawal Rules

  • Before 1 year:
    No interest is paid; if paid, it will be deducted from the principal.

  • After 1 year but before 2 years:
    A penalty of 1.5% of the deposit is deducted.

  • After 2 years but before 5 years:
    A penalty of 1% of the deposit is deducted.

  • Extended Accounts:
    No penalty is charged if the account is closed after 1 year of extension.

How to Open an SCSS Account

  1. Visit a Post Office or Authorized Bank:

    • Carry Aadhaar, PAN card, age proof, and address proof.
  2. Fill out the Application:

    • Provide necessary details and choose a single or joint account.
  3. Deposit the Amount:

    • Make a one-time lump sum deposit between ₹1,000 and ₹30 lakh.
  4. Start Earning Regular Income:

    • Enjoy guaranteed quarterly payouts.

SCSS is an excellent choice for senior citizens seeking financial stability, tax benefits, and a reliable income stream post-retirement.

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