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
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High Interest Rate:
- Currently offers 8.2% annual interest (paid quarterly).
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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.
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Investment Limits:
- Minimum: ₹1,000
- Maximum: ₹30 lakh (in one account).
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Maturity Period:
- Fixed tenure of 5 years, with an option to extend for another 3 years.
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Account Type:
- Open a single account or a joint account (only with a spouse).
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Tax Benefits:
- Up to ₹1.5 lakh tax exemption under Section 80C of the Income Tax Act.
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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
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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
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Visit a Post Office or Authorized Bank:
- Carry Aadhaar, PAN card, age proof, and address proof.
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Fill out the Application:
- Provide necessary details and choose a single or joint account.
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Deposit the Amount:
- Make a one-time lump sum deposit between ₹1,000 and ₹30 lakh.
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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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