What is Post Office Senior Citizen Savings Scheme, how can one avail its benefits?

After retirement, every person wants to live a comfortable life. He should not be financially dependent on anyone. But, for this it is important that you invest your money in the right place after retirement.

If you are looking for an investment option that gives good returns after retirement, then you can invest money in Post Office Senior Citizen Savings Scheme (SCSS), which is especially for senior citizens. Let us know what is the eligibility for this scheme and how you can avail it.

What is the eligibility to invest in SCSS?
To invest in Post Office Senior Citizen Savings Scheme, you must be at least 60 years of age. However, if someone has taken Voluntary Retirement Scheme (VRS) at the age of 50 years or more then he can also invest in this scheme. People retiring from defense sector can also invest money in it.

How much can one invest in SCSS?
You can invest from Rs 1,000 to Rs 30 lakh in Senior Citizen Savings Scheme. Earlier the investment limit was up to Rs 15 lakh, which has now been increased. If you want to invest less than Rs 1 lakh then you can open an account by paying in cash. But, if you deposit more than Rs 1 lakh, you will have to give a cheque. You can open more than one account, but the total investment amount cannot exceed Rs 30 lakh.

How much return do you get?
8.2 percent interest is available in SCSS. In this, the investment amount matures after five years. Investment can also be extended for three years. If you have invested Rs 10 lakh in the scheme for 5 years, then you will get a total of Rs 14.28 lakh. In this, tax exemption is also available under Section 80C of Income Tax on investment of Rs 1.5 lakh.

Is SCSS better than FD?
The answer to this question actually depends on your need and how long you want to invest. If you want to invest for one, two or three years then FD (Fixed Deposit) may be better for you. But, if you want to invest for a longer period then Senior Citizen Savings Scheme would be a good option.

6.9 percent interest is available on 1 year FD. Interest will be given at the rate of 7 percent on FD of 2 and 3 years and interest at the rate of 7.5 percent on FD of 5 years. Whereas, SCSS will give you a higher interest rate of 8.2 percent. In such a situation, if we compare 5 year FD and SCSS, then SCSS is a profitable deal.