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

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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