Senior Citizens Savings Scheme: The Post Office Senior Citizens Savings Scheme (SCSS) is a great investment option for senior citizens who want to ensure a steady income after retirement. If you’re looking for a secure and reliable way to earn pension after retirement, this scheme can be a fantastic choice for you. Especially for those who have a lump sum amount to invest and want regular income during their retirement years.
How Does the Post Office Senior Citizens Savings Scheme Work?
In this scheme, you need to make a one-time investment, and then you will receive monthly or quarterly interest payments, which essentially serve as your pension. So, once you invest, you continue to receive a pension for years to come.
This scheme is specifically designed for individuals who are 60 years or older. Additionally, those who have taken VRS (Voluntary Retirement Scheme) and are between 55 to 60 years old can also apply. Defense personnel retired under 60 years of age are also eligible for this scheme.
What Is the Interest and Pension System?
The Post Office Senior Citizens Savings Scheme offers an attractive 8.20% annual interest rate. The best part is that the interest is paid quarterly, meaning every three months. The maturity period for this scheme is 5 years, and the maximum investment limit is ₹30 lakh per person.
If you invest ₹30 lakh, you will receive ₹61,500 every three months as interest. This translates into a monthly pension of around ₹20,500. Annually, you will receive ₹2,46,000 in total pension.
Who Can Invest in This Scheme?
This scheme is available for people who are 60 years old or older. Additionally, individuals who have taken VRS and are aged between 55 to 60 years can also apply. Defense retirees who are above 50 years but under 60 years can also invest, provided the investment is made within one month of retirement.
What Happens If You Want to Close the Account Early?
- If you wish to close the account before 5 years, there is a penalty.
- If you withdraw the money within the first year, you won’t receive any interest.
- If you withdraw the money after one year, there will be a 15% deduction from the invested amount.
- If you withdraw the money after two years, a 1% deduction will be applied.
What Is the Locking Period and How to Invest?
The scheme has a lock-in period of 5 years, but you can extend it for 3 more years at a time. If you do not wish to extend, you can withdraw your amount.
This scheme is an excellent option for people looking for safe investment and a way to save tax while securing a steady pension for their retirement. If you are worried about your post-retirement income, this scheme ensures that you get a regular pension after retirement.
Read More
Bank Holiday: Big News for Bank Employees, Government Approves 5-Day Work Week
ITR Filing: Top Mistakes to Avoid for a Smooth Tax Filing Experience
Good News for Central Employees: DA to Rise by 3% in July, Here’s the Calculation
Dailynews24 App :
Read the latest News of Country, Education, Entertainment, Business Updates, Religion, Cricket, Horoscope Here. Read Daily Breaking News in English and Short Video News Covers.
