Post office senior citizen savings scheme- Under this scheme of post office money can be invested for 5 years. After maturity, this scheme can be extended for 3 years..
New Delhi. The Post Office provides various types of postal services as well as many types of banking services. The post office also offers schemes for the elderly. In this, more interest is available than bank FD. Yes, Post Office Senior Citizens Savings Scheme (SCSS) is a better scheme for senior citizens. This post office scheme is the safest investment option for senior citizens. Money can be invested under this scheme for 5 years. After maturity, this scheme can be extended for 3 years. You can invest up to a maximum of Rs 15 lakh under this scheme.
Know how to get 7 lakhs on maturity
If a customer makes a monthly deposit of Rs 8,334 in this policy every month, then after five years of maturity of the account, he gets an amount of about Rs 7 lakh. Let us tell you that on depositing Rs 8,334 every month, one will deposit one lakh rupees in a year. This means that in 5 years the amount deposited will become Rs 5 lakh. This amount including interest will be Rs 6,85,000.
When can I open an account?
The age to open the account is 60 years but a person taking voluntary retirement who is above 55 years of age but less than 60 years can also invest by opening this account. Under this scheme, money has to be deposited in this account only once.
The maximum amount that can be deposited in this account is Rs 15 lakh. The amount to be deposited should not exceed the amount of retirement benefits. Money can be deposited in this account in multiples of Rs 1000.
How to Open SCSS Account in Post Office
You can open a Senior Citizen Savings Scheme account in all post offices. The interest earned from the SCSS account is automatically credited to the investor’s linked savings account in the same post office.
Tax benefit from investment
Investments made in Senior Citizen Savings Scheme account get the benefit of income tax deduction under section 80C of the Income Tax Act, 1961. Interest on SCSS is fully taxable. If the interest amount earned is more than Rs 50,000 in a financial year, then Tax Deduction at Source (TDS) will be applicable on the interest earned. This limit of TDS deduction on SCSS investment is applicable from 2020 21 onwards.
Other facilities
Nomination facility is also available in this scheme. The account holder can make one or more people the nominee of the account. If money is to be withdrawn in the middle, then money can be withdrawn from SCSS after one year, but for that penalty has to be paid.
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