You are paid an interest of 7.4% per annum in the Senior Citizen Saving Scheme of the Post Office. In this, you can open an account with a minimum of Rs 1000 and the maximum will not exceed Rs 15 lakh.
Investing in a post office scheme is considered the safest. It has many such schemes, in which one gets good returns on investment. One such senior citizen scheme is where you can invest up to Rs 15 lakh. Let us know how much will have to be invested in this scheme and for how many years. Also, how much interest is given to you in this plan.
How much interest do you get
You are paid an interest of 7.4% per annum in the Senior Citizen Saving Scheme of the Post Office. In this, you can open an account with a minimum of Rs 1000 and the maximum will not exceed Rs 15 lakh.
Salient Features of the Scheme
- Individuals above 60 years of age can invest in this scheme.
- Retired civilian employees above 55 years and below 60 years of age, subject to the condition that retirement benefits can be availed.
- The account can be opened either individually or jointly with the spouse.
- Investment under this scheme is eligible for the benefits of section 80C of the Income Tax Act, 1961.
- One can invest in this scheme for five years.
- In case of death of the account holder, the account will earn interest at the rate of PO Savings Account from the date of death.
- After the death of the account holder, the entire amount is paid to the nominee.
How will the fund of about 15 lakhs be made?
You have to invest a lump sum of Rs 10.50 lakhs to make a corpus of around 15 lakhs. On investing 10.50 lakhs, you will get the benefit of compounding interest at the rate of 7.4 per cent. That is, when your investment becomes 5 years, then you will get a fund of about Rs 14,95000.
Tax exemption will also be available
Apart from this, you will also get the benefit of tax exemption in this scheme. If your interest amount is Rs 10,000 per annum, then your TDS starts deducting. However, investment in this scheme will continue to get the benefit of exemption under section 80C of the Income Tax Act.
