Post Office SCSS: Special scheme for senior citizens, will get ₹ 61,500 every 3 months; Know the complete mathematics of investing ₹30 lakh

The priority of every senior citizen after retirement is 100% protection of capital and a fixed, regular income from it. Amidst the ups and downs of the stock market and falling bank interest rates, the Post Office Senior Citizen Savings Scheme (SCSS) has emerged as the most reliable investment option for the citizens of the country aged 60 years and above. This small savings scheme, directly guaranteed by the Central Government, not only offers high interest rates, but every three months the fixed interest is paid directly into the investor’s bank or post office savings account. If a senior citizen invests in this scheme up to the maximum limit, he gets a bumper interest payment of ₹61,500 (approximately ₹61,499-₹61,500) every quarter, which is equivalent to a regular pension-like income of approximately ₹20,500 monthly.

On Senior Citizen Savings Scheme by Central Government 8.2% per annum An attractive interest rate of Rs. The biggest feature of this plan is its ‘rate lock-in’ rule—that is, the interest rate of 8.2% applicable on the day you open the account is frozen (fixed) for your entire tenure of 5 years. In the budget, the government has increased the maximum investment limit of this scheme from ₹ 15 lakh. ₹30 lakh Had done.

Complete account of interest and returns on maximum investment of ₹30 lakh

• Total Lump Sum Deposit (Principal Deposit): ₹30,00,000

• Applicable Annual Interest Rate: 8.2% pa

• Annual Interest Income: 8.2% of ₹30,00,000 = ₹2,46,000 per year

• Quarterly Interest Payment: ₹2,46,000 ÷ 4 = ₹61,500 per quarter

• Monthly Equivalent Income: Approximately ₹20,500 per month

• Total Interest Earned in 5 Years: ₹61,500 × 20 quarters = ₹12,30,000

• Total Return on Maturity: After receiving interest of ₹ 12.30 lakh in the account, after completion of 5 years, the entire principal amount of ₹ 30,00,000 is returned.

In Senior Citizen Savings Scheme, interest is not compounded, rather it is automatically credited every three months. As per Finance Ministry rules, interest is transferred directly to the investor’s linked savings account on four fixed dates of the year:

1. First quarter: 31st March

2. Second quarter: 30 June

3. Third Quarter: 30 September

4. Fourth quarter: 31st December

If both husband and wife are 60 years of age or above, they can open separate individual accounts and invest a total of up to ₹60 lakh. In such a situation the family has to ₹1,23,000 i.e. about every month ₹41,000 Receives regular income.

If an investor wants to deposit less than ₹30 lakh, the details of the quarterly interest he will get at the rate of 8.2% can be understood from the table given below:

To open an account under this scheme of the post office, it is mandatory to fulfill the following standards:

• Age Limit: The minimum age for general citizens should be 60 years. Individuals between 55 to 60 years of age taking voluntary retirement (VRS) or superannuation can open an account within 1 month of receiving retirement benefits. The minimum age limit for retired employees from Defense Services has been kept at 50 years.

• Tenure of the scheme: This account is opened for 5 years. After maturity, investors can extend it further in blocks of 3 years.

• Premature Withdrawal: If the account is closed between 1 to 2 years due to any emergent need, 1.5% of the principal amount is deducted. If the account is closed after 2 years and before 5 years, the entire remaining amount is refunded after deducting a penalty of only 1% of the principal amount.

Investing in the Senior Citizen Savings Scheme offers the benefit of tax deduction up to ₹ 1.5 lakh per financial year (in the old tax regime) under Section 80C of the Income Tax Act. However, the quarterly interest received from this scheme is fully taxable and is added as per the tax slab of the investor’s total annual income. For senior citizens, TDS at the rate of 10% is deducted by the bank or post office if the total annual interest income from all accounts exceeds ₹1,00,000. If the total annual income of a senior citizen is less than the income tax exemption limit, they can avoid TDS deduction by submitting Form 15H at the beginning of the financial year in the post office.

Senior citizens can easily open this account by visiting their nearest main post office or branch of any nationalized bank:

1. Collect SCSS Account Opening Form (Form A) from the nearest post office.

2. Enter personal details, nominee name and linked savings account number in the form.

3. Enclose official identity card, PAN card, two passport size photographs and age certificate for proof of identity and address.

4. Pay through check or demand draft (DD) for amounts above ₹1 lakh. Once the form is submitted, the account is activated within 24 to 48 hours and the passbook is issued, after which interest payment starts automatically every quarter.