Very good interest is given on the Senior Citizens Savings Scheme of the Post Office. If senior citizens deposit money in it for 5 years, they will be able to avail better interest rates and their money will also be completely safe.
Senior citizens have a lifelong savings as their retirement fund. They do not want to take any risk with this. This is the reason why they want to invest this hard-earned money in a place where their money is safe and they get guaranteed interest on it. That is why most senior citizens prefer to invest in bank FDs.
But if you deposit your savings in Post Office Senior Citizens Savings Scheme (SCSS) instead of bank FD for just 5 years, then your money will be 100% safe and you will also be able to take advantage of better interest rates on it. Currently, Senior Citizens Savings Scheme is giving interest at the rate of 8.2 percent. Know the special things related to SCSS.
What is the maximum amount you can deposit
Any senior citizen can invest up to Rs 30,00,000 in SCSS, while the minimum investment limit is Rs 1000. In this scheme, interest is paid on the deposited amount on quarterly basis. The scheme matures after 5 years. Any person whose age is 60 years or more can invest in this scheme. On the other hand, civil sector government employees taking VRS and people retiring from defense are given relaxation in age limit with some conditions.
You can earn Rs 12,30,000 only from interest
If you want, you can earn up to Rs 12,30,000 from Senior Citizens Savings Scheme just through interest. But for this you will have to deposit Rs 30,00,000 in the SCSS account. If you deposit Rs 30,00,000 in this scheme, then in 5 years you will get interest at the rate of 8.2 percent on it. According to the SCSS Calculator, this interest will be Rs 12,30,000. That is, after 5 years you will get a maturity amount of Rs 42,30,000.
If you want to continue the benefits of this scheme even after 5 years, then after the deposit amount matures, you can extend the account period for three years. It can be extended within 1 year of maturity. The extended account gets interest at the rate applicable on the date of maturity. SCSS provides the benefit of tax exemption under section 80C.
