The Post Office runs a variety of special investment schemes. These schemes are for people of all age groups. If you are planning to invest in the midst of the Corona crisis and want to build a huge fund with good returns in a few years, then this news will come in handy for you. Here we will give you information about such a scheme of post office, in which you can create a fund of Rs 14 lakh in just 5 years.
What is this plan
Here we are going to talk about Senior Citizen Savings Scheme (SCSS). Investors can avail interest @ 7.4 per cent by investing in SCSS. With this scheme, you can deposit Rs 14 lakh in 5 years. The age for opening an account under SCSS is fixed. You must be at least 60 years of age. That is, this scheme is for people of 60 years of age and above.
Who else can take advantage
Also, those who have taken VRS (Voluntary Retirement Scheme) can also open an account under this scheme. As per the scheme the minimum investment amount to open the account is Rs 1000, which can be maximum of Rs 15 lakh, which you can deposit in the SCSS account. If the account opening amount is less than Rs 1 lakh, you can open the account by making a cash payment. Payment above Rs 1 lakh can be made by cheque.
This is how 14 lakh rupees will be made in 5 years
You have to invest Rs 10 lakh together to achieve more than Rs 14 lakh in 5 years. If a senior citizen invests a lump sum of Rs 10 lakh in SCSS for five years, his total amount will become Rs 14,28,964 on maturity at an interest rate of 7.4 per cent. As an investor you will get a profit of Rs 4,28,964 as interest.
What is the maturity period
The maturity period of SCSS is 5 years and can be extended by an investor if he so desires. According to the India Post website, you can extend this plan for 3 years after maturity. However, to increase it, the account holder will have to apply for it by going to the post office. If your interest amount under this scheme is more than Rs 10,000 per annum, then TDS will be deducted. However, investment in SCSS is exempted under Section 80C of the Income Tax Act.
Close account prematurely
Under SCSS, the depositor can also hold more than one account in a joint venture with his/her spouse. But even then the maximum investment limit will be Rs 15 lakh. Nominee facility is available at the time of account opening and closing. Premature closure of the account is also allowed in this plan. But the post office will deduct 1.5% of the deposit on closing the account after 1 year of opening the account. On closing the account after 2 years, 1% of the deposit will be deducted.
