Many people do not have a clear idea about how to manage their savings after retirement. Many deposit it in the bank and suffer losses against inflation,
Many people are unsure how to manage their savings after retirement. Some deposit their money in the bank and suffer losses due to inflation, while others lack a plan, leading to unnecessary spending of their savings. To ensure financial security post-retirement, it is crucial to invest in a scheme that offers high returns or regular income. One such option is the Senior Citizen Savings Scheme (SCSS), a post office savings scheme that meets both these criteria.
Specifically designed for senior citizens, SCSS provides a safe and reliable option for regular income along with high returns and tax-saving benefits. This scheme is an ideal choice for post-retirement income generation. Indian senior citizens can invest either individually or jointly to maximize returns and tax advantages. With a maturity period of 5 years, the scheme offers an attractive annual interest rate of 8.2 percent.
In the SCSS, an individual can open one account, or a joint account with their spouse. If both husband and wife are eligible, they can each open separate accounts. A maximum of Rs 30 lakh can be deposited in a single account or a joint account with a spouse, and a total of Rs 60 lakh can be invested across two separate accounts. After the 5-year maturity period, the account can be extended for an additional 3 years.
For those opting for regular income through the SCSS, a quarterly payout of Rs 60,150 or a monthly payout of Rs 20,050 can be received. Alternatively, if the interest is not withdrawn, a total of Rs 12 lakh will accrue over 5 years. At the end of the term, the full initial deposit is returned, and the option to reinvest for another term is available.
If both spouses invest through separate SCSS accounts, a combined total of Rs 60 lakh can be invested, doubling the potential interest earned to Rs 24 lakh over 5 years. For monthly income, a total of Rs 40,100 will be credited to your account each month. After the 5-year maturity, the initial investment is returned, and reinvestment for another term is possible.