Post Office Scheme for Senior Citizens:In the Post Office Senior Citizens Savings Scheme, you can earn up to ₹12,30,000 in interest over just 5 years. Here’s how.
Senior Citizens Savings Scheme: When seniors retire, they often receive a significant lump sum payment. Leaving this money in a bank account may lead to gradual expenditure. Instead, investing it in a high-yield scheme is a smarter choice. The Post Office Senior Citizen Savings Scheme is worth considering. This scheme provides excellent interest rates for elderly investors. Find out the essential details here.
8.2% interest is being received
The Post Office Senior Citizen Savings Scheme is a deposit plan where a fixed sum is deposited for a duration of 5 years. Senior citizens can invest up to ₹30,00,000, with a minimum investment of ₹1,000. The current interest rate for SCSS is 8.2%.
This way you will get interest of ₹ 12,30,000
If you invest the maximum amount of ₹30,00,000 in this scheme, at an interest rate of 8.2%, you will earn ₹12,30,000 in interest over 5 years. The interest of ₹61,500 will be credited every quarter. Consequently, after 5 years, the total maturity amount will be ₹42,30,000.
Should you invest ₹15,00,000 in this scheme for a period of 5 years, the existing interest rate of 8.2% will yield you ₹6,15,000 as interest. This means you will get ₹30,750 as interest every quarter. Combining the principal amount of ₹15,00,000 with the interest earned, the total maturity amount will be ₹21,15,000.
Who can invest
Individuals who are 60 years or older can invest in this scheme. Civil sector government employees taking VRS and defense sector retirees receive some age limit relaxations with certain conditions. The scheme matures in 5 years. If you want to continue with the scheme after the initial 5 years, you can extend the account for another three years after the maturity of the deposit. This extension should be done within one year of the scheme’s maturity. The extended account will earn interest at the rate effective on the maturity date. SCSS investments qualify for tax benefits under Section 80C.
