Senior Citizens Savings Scheme: Senior Citizens Savings Scheme (SCSS) of the post office which gives guaranteed returns is very good for senior citizens. If you have some funds after retirement and you want to earn 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 one-time investment made by you, you will keep getting regular income till the maturity of the scheme, while your entire deposit will also be safe. After maturity, you will get your entire principal back. If you want, then keep taking advantage of regular income by depositing it in this scheme till the next maturity.
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What is the post office SCSS scheme
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 with tax benefits. SCSS is the highest interest paying savings scheme of the post office, which can be started in any nearest post office or any authorized bank with some necessary documents. There is a sovereign guarantee of the government on small savings of the post office, so there is no tension of safety and returns in it.
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The highest interest paying scheme of post office
Senior Citizens Savings Scheme is the highest interest paying scheme of the post office, which is getting 8.2 percent annual interest. The interest amount is paid on quarterly basis. Apart from this, only Sukanya Scheme is getting this much interest. Under this, an account can be opened in any nearby post office.
Single or joint account facility
In Senior Citizens Savings Scheme, you can open a single account or a joint account with your wife. The maturity period is 5 years. A minimum of Rs 1000 and a maximum of Rs 30,00,000 can be invested in one account. Under Section 80C of the Income Tax Act, tax benefits are available on investment up to Rs 1.5 lakh. There is also a facility of premature closing.
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How to get 31000 rupees every 3 months
Maximum deposit in the scheme: Rs 30 lakh
Interest rate: 8.2% per annum
Maturity period: 5 years
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 retired employees in the age group of 55-60 years who have opted for Voluntary Retirement Scheme (VRS), can open an account.
– Retired defence personnel, minimum age 60 years, can open the account.
HUFs and NRIs are not eligible to invest in SCSS.
Mutual Funds Return: 5 schemes with highest returns in 3 years, all doubled the money, growth up to 187%
If you withdraw money before maturity
– There is a penalty for closing the SCSS account before the 5-year lock-in period. This penalty depends on how long you have been opening the account.
– If the account is closed before one year, no interest is paid on the deposited amount. If interest has been paid, it will be deducted from the principal.
– If the account is closed after 1 year but before 2 years, then 1.5 percent of the amount is deducted from the balance in the account 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, then there will be no penalty if the account is closed after one year of extension.
