The Post Office small savings scheme offers attractive interest rates for senior citizens. By depositing a specific amount for 5 years, one can earn up to Rs 12,30,000 in interest alone.
Senior citizens receive their lifelong savings as a retirement fund and prefer not to take risks with this money. They want to invest their hard-earned money securely. That's why most senior citizens invest in fixed deposit schemes, which provide a guaranteed return.
Senior citizens can deposit their savings in the Post Office Senior Citizens Savings Scheme (SCSS) for 5 years. The money is 100% safe and earns excellent interest rates. Currently, the SCSS offers an 8.2% interest rate.
Senior citizens can invest up to Rs. 30 lakh in this scheme, with a minimum investment of Rs. 1000. Interest is paid quarterly. The scheme matures after 5 years. Anyone aged 60 or above can invest. Relaxations in the age limit are available for retired civil servants and defense personnel under certain conditions.
Earn up to Rs 12.3 lakh in interest through the Post Office Senior Citizens Savings Scheme. Deposit the maximum amount of Rs 30 lakh to earn 8.2% interest over 5 years, totaling Rs 12,30,000. The maturity amount after 5 years will be Rs 42,30,000.
Extend the scheme benefits for another three years after the initial five-year term. Extension must be done within one year of maturity. The extended account earns interest at the prevailing rate on the maturity date. Investments in this scheme qualify for tax benefits under Section 80C of the Income Tax Act.