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Post Office (India Post) for senior citizens looking for safe investments and regular income after retirement. Senior Citizen Savings Scheme (SCSS) The most popular and reliable option. Being backed by the Central Government, this scheme guarantees 100% security on the deposited capital. Currently the government is on this scheme 8.2 percent Offering attractive annual interest rate of Rs. If you deposit a lump sum, this scheme can give you an average fixed income of ₹20,500 (₹61,500 on a quarterly basis) every month.
Complete calculation of earning ₹20,500 every month
In the Senior Citizen Savings Scheme, interest is paid quarterly i.e. once every 3 months (on 1 April, 1 July, 1 October and 1 January) directly into your savings account.
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Maximum Investment Amount (Single Account): ₹30,00,000 (30 lakh rupees)
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Applicable interest rate: 8.2% p.a.
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Total interest per annum: ₹2,46,000
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Quarterly Interest Payment (every 3 months): ₹61,500
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Average Monthly Income (Monthly Equivalent): ₹20,500
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Total interest earned in 5 years: ₹12,30,000
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Total amount on maturity (principal + interest): ₹42,30,000
On completion of 5 years maturity, your entire principal amount (₹30 lakh) is safely returned.
Scheme eligibility and investment conditions
This account can be opened by Indian citizens of 60 years of age or above. Additionally, retired employees taking VRS or superannuation between the age of 55 to 60 years can also open this account within 1 month of receiving the retirement benefits. The minimum age limit for retired defense personnel has been fixed at 50 years. A minimum of ₹1,000 and a maximum of ₹30 lakh can be invested in this scheme. If both husband and wife are senior citizens, they can earn a quarterly income of ₹1,23,000 (average ₹41,000 monthly) by investing a total of ₹60 lakh through separate accounts.
Tax exemptions and other important benefits
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Exemption under Section 80C: Under Section 80C of the Income Tax Act, the benefit of tax deduction is available on investments up to ₹ 1.5 lakh (in the old tax system).
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Benefit of Section 80TTB: Senior citizens get tax exemption under Section 80TTB on interest income up to ₹ 50,000 annually.
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Duration Extension: After completion of the fixed period of 5 years, the account can be extended further in blocks of 3 years.
Account opening process
To open an account, you will have to go to the nearest post office or authorized banks and fill the form. Along with this, Aadhar card, PAN card, passport size photo, age certificate and if applying under retirement, then certificate of retirement dues has to be attached.