This scheme of Post Office is a jackpot for the elderly! Deposit money just once, income of ₹20,500 every month is assured..

Post Office Senior Citizen Savings Scheme: The biggest concern with retirement is that a fixed salary stops coming every month. In such a situation, what if you get such a means of investment, where you get a fixed income every month after retirement? In such a situation, the Senior Citizen Savings Scheme (SCSS) of the Post Office is a great option for you. Along with a safe investment in this government scheme, you can also get a guaranteed interest of ₹ 20,500 every month. Let's know how?

Special scheme for the elderly
The name of this scheme is Senior Citizen Savings Scheme (SCSS). It is specially designed for the elderly, in which not only do you get more interest than a bank FD, but your money is also 100% safe.

What is the Senior Citizen Savings Scheme (SCSS)?

SCSS is a small savings scheme backed by the Government of India, specially designed for citizens above 60 years of age. This is a deposit scheme in which you deposit a lump sum amount for 5 years, and the government gives you guaranteed interest on it every three months.

More profit than a bank FD

Among the safest investment options available for senior citizens, SCSS is one of the highest interest-paying schemes. Its interest rate of 8.2% is usually much higher than the 5-year fixed deposit (FD) of the big banks of the country. Once you invest money in it, the interest rate at that time gets locked for the entire 5 years. Even if the interest rates go down in the future, you will continue to get interest at the same high rate for 5 years.

How to get a bumper interest of ₹ 12.30 lakh? Understand the calculation

An investment of Rs 1 thousand to Rs 3 lakh can be made in this scheme. Let us understand this with a simple calculation. If a senior citizen invests the maximum limit, i.e., ₹30,00,000, in this scheme, then he will get a total of ₹2,46,000 (20,500 per month) at an annual interest rate of 8.2%. In such a situation, the total interest for 5 years will be ₹2,46,000 x 5 = ₹12,30,000. In this way, after 5 years, on maturity, you will get back ₹42,30,000 by combining your investment (₹30 lakh) and total interest (₹12.30 lakh).

Understand how much return on investment.

Who can invest?

Any person who is 60 years or more can invest in it. On the other hand, civil sector government employees taking VRS and people retiring from defense are given relaxation in age limit with some conditions.

Tax exemption also benefits
Investing in SCSS gives the benefit of tax exemption up to ₹1.5 lakh under Section 80C of the Income Tax Act. Keep in mind that the interest received from this scheme is taxable. If the interest amount in a financial year is more than ₹1,00,000, then TDS is deducted. It can be extended within 1 year of maturity. The extended account receives interest at the rate applicable on the date of maturity.

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