Let’s know about the post office SCSS.
Post Office Senior Citizen Savings Scheme (SCSS): Small savings schemes of Post Office have always been a better option for investing. The biggest reason for this is that there is a guarantee of protecting your money with good returns in it. The post office offers a variety of deposit schemes to its customers. They are also known as small savings schemes. These schemes are very popular due to better and guaranteed returns. The government has sovereign guarantee on these schemes. One of these schemes is the Senior Citizen Savings Scheme (SCSS) of the post office. Let’s know about the post office SCSS.
Will get more than 14 lakhs on 10 lakhs
If you invest a lump sum of Rs 10 lakh in the Senior Citizens Scheme, then after 5 years, the total amount on maturity will be Rs 14,28,964, which is more than Rs 14 lakh, according to the interest rate of 7.4 percent (compounding) annually. Here you are getting a benefit of Rs 4,28,964 as interest.
Senior Citizen Savings Scheme (SCSS) Features
- The scheme will get an annual interest of 7.4 percent. The maturity period in this scheme is 5 years.
- Deposit can be made in multiple of 1000 rupees. Also, there can be no more than 15 lakh rupees in it. You can invest in it at one time.
- Under SCSS, a person 60 years of age or older can open an account.
- If someone is 55 years or more but less than 60 years old and has taken VRS, then he can also open an account in SCSS. But the condition is that he will have to open this account within one month of getting the retirement benefits and the amount to be deposited in it should not be more than the amortization of the retirement benefits.
- Under SCSS, the depositor can also keep more than one account at the joint with individual or his wife / husband. But together with all, the maximum investment limit cannot be more than 1.5 million.
- Accounts with less than 1 lakh can be opened in cash, but for more than that, a check has to be used.
- Nomination facility is available at the time of opening and closing the account.
- The account can be transferred from one post office to another.
- Premature closure allowed. But the post office will deduct 1.5% of the deposit only after closing the account after 1 year of account opening, while after closing after 2 years 1% of the deposit will be deducted.
- After completion of maturity period, the account can be extended for another three years. For this, application has to be given within one year of the maturity date.
- Talking about tax, if your interest amount exceeds Rs 10,000 annually under SCSS, then your TDS gets deducted. However, investment in this scheme is exempt under Section 80C of the Income Tax Act.