After retirement, everyone wants their savings to be completely safe and earn enough returns to ensure a comfortable old age. The Government of India’s Senior Citizen Savings Scheme (SCSS) is an excellent and reliable option to meet this need. Currently, this scheme offers an excellent interest rate of 8.2%, which is much higher than any regular bank FD.
Backed by a 100% government guarantee, this scheme not only protects your money but also provides you with a guaranteed income every three months. If you are planning a secure future for yourself or your parents, learn in this article how you can earn lakhs of rupees by making a lump sum investment.
What is the SCSS Scheme
This Post Office scheme is specifically designed for citizens over 60 years of age. The Government of India is directly responsible for the security of your investment, so there is no risk involved. The original maturity period of this scheme is 5 years. If the investor wishes, the term can be extended for another 3 years after the completion of 5 years.
Currently, the government has fixed the interest rate at 8.20% per annum. Its biggest advantage is that interest is paid quarterly, i.e., on the first of April, July, October, and January. This is especially beneficial for senior citizens who rely on monthly or quarterly income for their daily expenses. It’s worth noting that if you don’t withdraw interest for any quarter, you won’t be paid any additional interest on that amount.
More than 3 lakhs on an investment of 8 lakhs
You can start with a minimum of ₹1,000 and invest up to a maximum of ₹30 lakhs in this scheme. Investments are always made in multiples of ₹1,000. To calculate its benefits, if you deposit ₹800,000 (Rs 8 lakh) in this scheme as a lump sum, you will earn ₹328,000 in interest after 5 years at an 8.2% rate. This means you will have a solid corpus of ₹1128,000 at maturity. If you calculate your quarterly income, an investment of ₹8 lakh will generate ₹16,400 every three months.
Who can open this account?
The government has established clear eligibility rules to ensure that the benefits of this scheme reach only the rightful beneficiaries. Primarily, individuals aged 60 years and above are eligible. However, those who have taken voluntary retirement (VRS) at the age of 55 can also open this account within one month of receiving their retirement benefits.
Additionally, retired defense personnel can avail themselves of this scheme even after the age of 50. This account can be opened individually or as a joint account with their spouse. Note that NRIs and Hindu Undivided Families (HUFs) are not eligible to invest in this scheme.
Premature Withdrawal Facility
This scheme allows account holders to nominate one or more individuals, which can be changed at any time if needed. Although it is a long-term investment, you can also close the account in case of emergencies. If you withdraw money within one year of opening the account, interest is deducted from the deposit, and the remaining amount is refunded.
Withdrawals between one and two years attract a 1.5% interest rate, and withdrawals after two years attract a 1% interest rate. This flexibility provides senior citizens with financial security and liquidity when needed.
The post Post Office SCSS Scheme: Know How ₹8 Lakh Becomes ₹11.28 Lakh in 5 Years, Full Details Inside appeared first on Times Bull.