Every person wishes that his life should be comfortable after retirement. He should not have to depend on anyone financially. But, for this it is necessary that you invest your money in the right place after retirement. With increasing age, the ability to work decreases and in such a situation a safe investment plan becomes very important. Keeping this need in mind, Post Office Senior Citizens Savings Scheme has been created. This scheme not only gives high interest, but also provides government protection.
If you are looking for an investment option that gives good returns after retirement, then you can invest money in the Post Office Senior Citizen Savings Scheme (SCSS), which is especially for senior citizens. Let us know what is the eligibility for this scheme and how you can take advantage of it?
What Is The Eligibility To Invest In SCSS?
You must be at least 60 years of age to invest in the Post Office Senior Citizen Savings Scheme. However, if someone has taken Voluntary Retirement Scheme (VRS) at the age of 50 years or more, then he can also invest in this scheme. People retiring from the defense sector can also invest in it.
High Interest And Regular Quarterly Income
SCSS currently offers 8.2% interest per annum, which is higher than bank FDs. In this scheme, interest is deposited in your account every quarter, which ensures your regular income. For example, investing Rs 30 lakh will generate an income of Rs 60,150 every three months and Rs 2,40,600 in a year. In five years, it reaches a total of Rs 12,03,000.
Investment Limit And Process
In SCSS, a maximum of Rs 30 lakh can be invested through a single account and husband and wife together can invest up to ₹ 60 lakh. The investment starts by going to the post office and opening an SCSS account. The minimum investment is just Rs 1,000, making it very easy to start.
Tax Benefits And Extra Security
Investment in SCSS gives you tax exemption of up to ₹1.5 lakh under Section 80C of the Income Tax Act. However, TDS is applicable on interest if it exceeds a specified limit. The interest received in this scheme comes with a government guarantee, so investors are not at risk of default.
Why SCSS is better Than FD
The answer to this question actually depends on your need, for how long you want to invest. If you want to invest for one, two or three years, then FD (Fixed Deposit) may be better for you. But, if you want to invest for a longer period, then Senior Citizen Savings Scheme will be a good option.
1 year FD gives 6.9 percent interest. 2 and 3 year FDs will get 7 percent interest and 5 year FDs will get 7.5 percent interest. On the other hand, SCSS will give you a high interest rate of 8.2 percent. In such a situation, if we compare 5-year FD and SCSS, then SCSS is a profitable deal.
Conclusion
It is very important to invest your money in the right place after retirement so that your investment is safe and you also get better returns. If you are looking for an investment option that gives good returns after retirement If you have any question regarding this post, then you can tell us by commenting in the comment box given below. Your feedback and suggestions are welcome as always. Thank you.
