Post Office SCSS: Financial independence in old age would be ideal if we didn’t have to rely on others for money matters. To achieve this, it’s crucial to invest our hard-earned money wisely. Luckily, the post office offers an excellent scheme known as the Senior Citizen Saving Scheme (SCSS), providing a secure and guaranteed return on investment.
The key highlight of this scheme is that it is sponsored by the Central Government and offers remarkable returns on lump sum deposits, surpassing those of bank fixed deposits. Currently, the SCSS offers an interest rate of 8.2% per annum, which is subject to change every year.
A Special Scheme for Senior Citizens
The Post Office Senior Citizen Saving Scheme (SCSS) is specifically designed for individuals aged 60 and above, including those who have opted for Voluntary Retirement Scheme (VRS). Currently, the scheme offers an attractive interest rate of 8.2%. By depositing Rs 5 lakh in this scheme, senior citizens can earn Rs 10,250 every quarter solely through the interest. Over a span of 5 years, the interest alone can amount to Rs 2 lakh. Let’s break it down with a calculation:
Post Office SCSS Calculation
- Lumpsum Deposit Amount: Rs 5 Lakh
- Deposit Tenure: 5 Years
- Interest Rate: 8.2%
- Maturity Amount: Rs 7,05,000
- Interest Earning: Rs 2,05,000
- Quarterly Income: Rs 10,250
Many Benefits of Post Office SCSS
- This savings scheme is a reliable and secure investment option supported by the Government of India. It is considered one of the preferred choices for investment.
- Investors can avail tax exemption benefits of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act.
- With an annual interest rate of 8.2%, it outperforms other investment options with varying risk factors.
- The account under this post office scheme can be easily transferred to any center across the country.
- Interest is paid every three months, credited to the account on the first day of April, July, October, and January.
How to Open an SCSS Account?
To open an account for the Senior Citizen Saving Scheme, you need to fill out a form available at any post office or government/private bank. Along with the form, you will be required to submit two passport-size photographs, identity proof, and copies of other KYC documents. Opening a bank account offers the advantage of directly depositing the earned interest into your bank account. Account statements are sent to depositors through post or email for easy monitoring.