SCSS: If there is a fixed income every month after retirement, then life seems more relaxed. At such times, schemes that provide safe investment and guaranteed returns become very important. Post Office Senior Citizen Savings Scheme is one such government scheme
SCSS: If there is a fixed income every month after retirement, then life seems more relaxed. At such times, schemes that provide safe investment and guaranteed returns become very important. Post Office Senior Citizen Savings Scheme is one such government scheme, which not only gives good interest rate, but also assures tax savings and regular income. This scheme is specially designed for those senior citizens who want a fixed income every month on their savings without any risk after retirement.
What is SCSS?
SCSS is a safe savings scheme in which currently 8.2% annual interest is being given, which is more than the fixed deposit of many banks. You can start investing in this with just Rs 1,000, and can deposit a maximum of Rs 30 lakh.
Who can invest?
- Any person who is 60 years of age or above can invest money in this scheme.
- If a government employee has taken voluntary retirement between the ages of 55 and 60, then he is also eligible.
- Retired defense personnel can invest at the age of 50 to 60 years.
- You can also open a joint account with your wife/husband.
How much will you earn every month?
If a person invests Rs 30 lakh in this scheme as a lump sum, he will get an interest of about Rs 2.46 lakh every year. This money comes into the account every three months, that is, a regular income of about Rs 20,500 per month is guaranteed.
If you invest Rs 20 lakh, then the total return including interest in five years will be around Rs 28.2 lakh. During this period, you will earn around Rs 41,000 every three months, i.e. Rs 13,666 per month.
Tax relief too
Through SCSS, you can also get tax exemption of up to Rs 1.5 lakh annually under section 80C.
Time and rules
- This scheme is for 5 years, which can be extended up to 3 years.
- If you close the account before one year, then no interest will be given.
- If you close it between 2 to 5 years, 1% interest will be deducted.
Why is SCSS a good option?
Government guarantee, good interest rate, tax savings and fixed income all these make SCSS a reliable and profitable deal for retired people. If you want a stable income after retirement, it is the best option for them.
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