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Senior Citizen Savings Scheme: The Post Office Senior Citizen Savings Scheme (SCSS), which offers guaranteed returns, is very good for senior citizens. If you have some funds after retirement and want to get regular income through it, then SCSS is the best option for you. You can use it for income on monthly or quarterly basis. After the lump sum investment you make, you will continue to receive regular income till the maturity of the scheme, while your entire deposit will also be safe. After maturity, you will get your entire principal amount back. If you wish, you can continue to enjoy regular income by depositing in this scheme till the next maturity.
What is SCSS scheme of post office?
Senior Citizens Savings Scheme (SCSS) is a government-backed retirement benefit program. Senior citizens can invest a lump sum in this scheme individually or jointly and get regular income along with tax benefits. SCSS is the highest interest yielding post office savings scheme, which can be started at any nearest post office or any authorized bank with some required documents. There is a sovereign guarantee of the government on small savings of the post office, hence there is no tension about security and returns.
Most interest giving scheme of post office
Senior Citizen Saving Scheme is the highest interest paying scheme of the Post Office, on which 8.2 percent interest is being given annually. In this, the interest amount is given on quarterly basis. Apart from this, only Sukanya Scheme is getting this much interest. Under this, an account can be opened in any nearest post office.
Single or joint account facility
In Senior Citizen Savings Scheme, you can open a single account or a joint account with your wife. Its maturity is 5 years. A minimum of Rs 1000 and a maximum of Rs 30,00,000 can be invested in an account. In this, tax benefit is available on investment up to Rs 1.5 lakh under Section 80C of the Income Tax Act. At the same time, the facility of premature closure is also available.
How to get Rs 31000 every 3 months?
Maximum deposit in the scheme: 30 lakh rupees
Interest Rate: 8.2 percent per year
Maturity Period: 5 year
Quarterly Interest: Rs 30,750
annual interest: Rs 1,23,000
Total interest in 5 years: Rs 6,15,000
What is the eligibility for the scheme?
– If you are above 60 years of age or are retired employees in the age group of 55-60 years who have opted for Voluntary Retirement Scheme (VRS), they can open an account.
– Retired defense personnel, who are at least 60 years of age, can open an account.
HUFs and NRIs are not eligible to invest in SCSS.
If you withdraw money before maturity
– There is a penalty for closing SCSS account before the lock-in period of 5 years. This penalty depends on how long you have been opening the account.
– If the account is closed before one year, no interest is given on the deposited amount. Even if interest is received, it will be deducted from the principal amount.
– If the account is closed after 1 year but before 2 years, 1.5 percent of the deposited amount is deducted at the time of payment.
– If the account is closed after 2 years but before 5 years, 1 percent of the principal amount is deducted.
– If your SCSS account is an extended account, there will be no penalty for closing the account after one year of extension.