Want a government-backed investment option that can provide regular income after a one-time investment?
The Post Office Senior Citizen Savings Scheme (SCSS) is one such option. It is designed especially for senior citizens and offers an interest rate of 8.2% per year.
With the maximum investment in a joint account, investors can earn up to ₹20,500 per month from interest.
Government-Backed and Low-Risk Investment
Post Office savings schemes are backed by the government, making them a popular choice for people who want relatively secure investment options.
These schemes are available for different age groups and offer attractive interest rates.
Some also provide tax benefits under Section 80C of the Income Tax Act, subject to applicable rules and limits.
The SCSS can be started with an investment of ₹1,000, while the maximum investment limit is ₹30 lakh.
How Can You Earn ₹20,500 Every Month?
The Senior Citizen Savings Scheme has a 5-year maturity period and currently offers 8.2% annual interest.
Interest is paid every three months rather than every month.
For example, if a couple invests the maximum ₹30 lakh in a joint SCSS account, the annual interest at 8.2% would be ₹2.46 lakh.
That works out to:
₹61,500 every quarter
Equivalent to around ₹20,500 per month
This interest income can continue for the five-year tenure, while the ₹30 lakh principal can be withdrawn on maturity, subject to the scheme rules.
What Happens After 5 Years?
The SCSS account matures after five years. Premature closure is possible under certain conditions, but applicable rules and penalties may apply.
There is also an option to extend the account for another three years, subject to the prevailing rules.
For senior citizens looking for regular income from a government-backed savings scheme, SCSS can therefore be an option worth considering.
