Post Office Senior Citizen Scheme 2023: Interest Rate, Benefits, Eligibility – India Post offers numerous lucrative programs to its clients. Plans for people of all ages are included. You can become a millionaire in a few years if you also want to make secure investments.
We’re going to tell you about the “Post Office Senior Citizen Saving Scheme,” which offers interest at 7.4%.
That is, with simple investment, you can get Rs. You can create a huge fund of 14 lakhs. Here through this article we are talking about Post Office Senior Citizen Saving Scheme.
Post Office Senior Citizen Scheme 2023
If you are retired then the Senior Citizen Saving Scheme (SCSS) scheme running in India Post is more beneficial and good for you. It is advisable to invest your lifetime earnings somewhere that is safe and gives returns
Age should be 60 years to open account in India Post SCSS. Only people aged 60 years or above can open an account in this scheme. Apart from this, people who have taken VRS can also open an account in this Post Office Senior Citizen Saving Scheme.
Post Office Senior Citizen Saving Scheme Calculator : If you invest Rs. 10 lakhs, then after 5 years i.e. at maturity, the total amount of India Post (India Post) is Rs. 14,28,964 will be. Here you are getting a benefit of Rs 4,28,964 as interest.
Senior Citizen Saving Scheme – Interest Rate
Negative aspects of the senior citizen savings plan: In this postal scheme, interest is accruing at a rate of 7.4% annually. The start date for this interest rate is April 1, 2020. After the initial deposit date, interest will be paid on the following dates: March 31, September 30, and December 31. After that, interest will be paid on the 31st of each month—on March 31, June 30, September 30, and December 31.
Senior Citizen Saving Scheme – Investment amount
In this government scheme, the amount has to be deposited only once. This amount will be in multiples of one thousand rupees and can be up to a maximum of 15 lakh rupees.
Senior Citizen Saving Scheme – Who can open an account?
Anyone above 60 years of age can open an account in Senior Citizen Savings Scheme. Apart from this any retired employee above 55 years of age but below 60 years of age. Within one month of receiving retirement benefits, you must invest in this. This also allows retired defense personnel under the age of 60 to invest. The investment must be made within a month of receiving the retirement benefits in this instance. You can open an account on your own or with your spouse.
Senior Citizen Saving Scheme – Investment Period
After five years have passed since it was opened, the account can be closed. For this one needs to present the suitable application structure alongside the passbook to the particular mail center. As long as the spouse is eligible to open an account in the scheme and does not already have any other accounts in it, the account can be maintained until maturity if the spouse is a joint holder or sole nominee.
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Senior Citizen Saving Scheme – Tax benefit and other benefits
Investment under this scheme provides benefits under Section 80C of the Income Tax Act, 1961.
The account holder can extend the account for more than 3 years from the maturity date. For this he has to deposit the appropriate form along with the passbook in the concerned post office.
Single and joint account can be opened
Senior Citizen Savings Scheme can be opened as a single account or as a joint account with your spouse. Apart from this, no other investor can be included in this account. In this scheme you can invest your money for five years.
Benefits of investing in SCSS
SCSS scheme offers several benefits to senior citizens-
- Since SCSS is a government scheme, it comes with all the security and safeguards associated with such government-backed programmes.
- Currently, the current interest rate is 6 percent per annum, which is very high. Therefore, this provides more returns that provide most of the tax-saving components under Sector 80C.
- Since the maturity period is longer and can be further extended, it encourages senior citizens to have this as a long-term investment plan that keeps them financially secure.
- Under Section 80C of the Income Tax Act, 1961, investments made by you in a senior citizen tax-saving scheme subject to a tax deduction of up to ₹1.5 lakh in any financial year.
- As you can invest any amount between Rs 1000 to Rs 15 lakh (in multiples of Rs 1000), it offers you the best flexibility. But, you can invest lumpsum only once.
- In case of emergency, you have the option of early withdrawal after applicable penalty is deducted.
- The scheme is very widely available, making it accessible to citizens across the country.
- The maximum amount in this case is Rs 15 lakh, and a joint account can be opened only with spouses. In case of joint SCSS account, it requires that the first depositor should be above 60 years of age. No such rule shall apply to another applicant.
- You can also select one or more nominees. You can also change or cancel the nomination you have made.
What happens on account closure?
You can close your account before five years after investing in this scheme. If you close the account within one year of investment, you will not get any interest. On the other hand, 1.5 percent will be deducted on account closure within 2 years. There, on account closure between 2 to 5 years, 1 percent will be deducted from your total deposit amount.