Very Stable and Secure Income for the Retired Elderly Post. Seniors looking for a risk-free and safe mode of investment for their retirement, Post Office senior citizen savings scheme is a good bet. This plan is supported by the government and provides stable monthly payments, which is especially important during the retirement.
How Much Can You Earn?
The SCSS offers a good rate of interest of 8.2%, which is possible among all the government schemes. With the maximum amount of ₹30 lakh possible to invest, seniors are allowed to earn an annual interest rate of 2.46 lakhs. This comes out to about ₹20,500 per month, received directly into the recipient’s bank account as monthly payments for basic and recurring expenses.
Investor Information and Property Features
In the past, the investment capacity within this scheme was set at ₹15 lakh but has recently been hiked to ₹30 lakh to allow seniors reap higher yield within the scheme. The scheme’s length of financing is 5 years with a prospect of expanding to 3 years more. They also give you the opportunity to change the investment depending on your changing financial status.
Eligibility and Tax Benefits
Any Indian citizen who is 60 years or older is entitled to invest in the SCSS. Another requirement is that anyone who has been retired on own initiative and is between 55 and 60 years of age also qualifies. Part of the income for this scheme is interest income which is taxable, but it has other benefits such as tax saving measure which one can use to off set tax hence making it more favorable for retiree.
Why Choose SCSS?
- Safe Investment: As it initiated by government, it is safe for investment.
- Regular Income: Regular pay-out allow fix cash flow at least every month.
- Attractive Interest Rate: It has 8.2% interest, which is reasonable and reasonable interest rates.
- Flexibility: To be able to capitalize extended investments for up to 8 years.
This scheme provides a secured future to those people who are planning to retire, so it is one of the best investment plans for the elders.
