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Senior Citizen Savings Scheme: People's savings are their strength after retirement, hence most elderly people do not want to take any risk in this regard. They want to invest this deposited capital somewhere where they get higher returns and their invested amount also remains completely safe. This is why most senior citizens invest money in FD in banks. Many banks also offer .50 percent more interest to senior citizens to encourage their FD investments.
If you are also thinking of investing your retirement capital in a safe place, then this time invest in post office scheme instead of bank FD. A special scheme is run in the post office for senior citizens, named Senior Citizen Savings Scheme. In this scheme, they are given good interest, with the help of which senior citizens can increase their savings rapidly.
The amount is deposited for 5 years
Senior Citizens Savings Scheme is a deposit scheme. In this the amount is deposited for 5 years. Any person who is 60 years of age or above can invest. At the same time, civil sector government employees taking VRS and people retiring from defense are given age relaxation with certain conditions.
8.2 percent interest and tax exemption also
At present interest is being given in SCSS at the rate of 8.2 percent. Senior citizens can invest a maximum of Rs 30,00,000 in this scheme, while the minimum investment limit is Rs 1000. In this scheme, interest is given on the deposited amount on quarterly basis. The scheme matures after 5 years. If you want to continue the benefits of this scheme even after 5 years, then after the maturity of the deposit, you can extend the account period for three years. It can be extended within 1 year of maturity. Interest on the extended account is available at the rate applicable on the date of maturity. The benefit of tax exemption under section 80C is available in SCSS.
In this way ₹ 15 lakh will become ₹ 21,15,000
If you want to increase your savings rapidly then this scheme can prove to be a better option. In this scheme, if you deposit Rs 15 lakh from your savings for 5 years, then according to the current interest rate of 8.2 percent, you will get only Rs 6,15,000 as interest in 5 years. If interest is calculated on quarterly basis then it will be Rs 30,750. In this way, by adding Rs 5,00,000 and interest amount of Rs 6,15,000, a total of Rs 21,15,000 will be received as maturity amount.