As a retirement fund, senior citizens have the accumulated capital accumulated through their entire life’s hard work. He does not want to take any kind of risk regarding this. This is why they want to invest their hard-earned money somewhere where their money will be safe and they will get guaranteed interest on it. Therefore, most senior citizens prefer to invest in bank FD.
But if you deposit your savings in Post Office Senior Citizens Savings Scheme (SCSS) instead of bank FD for only 5 years, then your money will also be 100% safe and you can get better interest rates on it. Will be able to take benefit also. At present, the interest rate in Senior Citizens Savings Scheme is 8.2 percent. Know the special things related to SCSS.
What is the maximum amount that can be deposited
Any senior citizen can invest a maximum of Rs 30,00,000 in SCSS, while the minimum investment limit is Rs 1000. In this scheme, interest is given 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. At the same time, civil sector government employees taking VRS and people retiring from defense are given age relaxation with certain conditions.
You can earn Rs 12,30,000 only from interest
If you want, you can earn a maximum of Rs 12,30,000 from the Senior Citizens Savings Scheme only from interest. But for this you will have to deposit Rs 30,00,000 in SCSS account. If you deposit Rs 30,00,000 in this scheme, then you will get 8.2 percent interest on it in 5 years. According to SCSS Calculator, this interest will be Rs 12,30,000. That means after 5 years you will get the maturity amount of Rs 42,30,000.
If you want to continue the benefits of this scheme even after 5 years, then after the maturity of the deposit amount, you can extend the account period for three years. It can be extended within 1 year of maturity. Interest on extended account is available at the rate applicable on the date of maturity. The benefit of tax exemption under section 80C is available in SCSS.
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