New Delhi. The biggest concern after retirement is stable income every month for expenses. Amid rising inflation and market risks, it becomes necessary for the elderly to have such a scheme in which money is safe and income is also fixed. The Post Office Senior Citizen Savings Scheme (SCSS) has been created keeping this need in mind.
Trusted returns with government protection
SCSS is a completely government-backed scheme, so there is no risk of capital loss if you invest in it. At present 8.2 percent annual interest is being given in this scheme. Once the account is opened, there is no change in the interest rate for the next 5 years, which makes it easier for the elderly to plan for the future.
Money directly into account every three months
The special thing about this scheme is that the interest amount is deposited directly into the investor’s bank account every three months. This provides regular cash flow to retirees, which they can use for medicines, household expenses or other needs.
Who can invest?
Those citizens whose age is 60 years or more can avail the benefit of this scheme. Apart from this, under certain special circumstances, retired government employees between the age of 55 to 60 years are also eligible. Talking about investment, an account can be opened with a minimum of Rs 1,000, while the maximum investment limit has been kept at Rs 30 lakh.
There will be relief in tax also
Investing in SCSS also gives the benefit of tax exemption up to Rs 1.5 lakh under Section 80C of the Income Tax Act. However, interest income is taxable, which is important to keep in mind before investing.
Monthly pension of Rs 20,500
If a senior citizen invests Rs 30 lakh in this scheme, he gets an interest of around Rs 2,46,000 annually. On quarterly basis this amount is Rs 61,500. If we look at it on a monthly basis, it is equivalent to a monthly income of approximately Rs 20,500, which acts as a regular income like pension.
Option to extend the period also
The basic tenure of SCSS is 5 years, but after maturity it can be extended for another 3 years. With this, senior citizens get the benefit of secure and stable income for a long time.
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