Indian Post operates a number of special saving schemes for the people of all ages. One such scheme is Post Office Senior Citizen Savings Scheme (SCSS). The Investment under SCSS is exempt from tax.
The Interest rate that an Investor can avail on this Saving Scheme is 7.4% which is very good in comparison to other Investment options available at present.
This scheme is for people aged 60 years or above, as well as, people who have taken VRS (Voluntary Retirement Scheme), can also open an account under this scheme.
How much you will get?
If the senior citizens invest a lump sum of Rs 5 lakhs in the scheme for five years, the total amount of investors will be Rs 7,14,482 on maturity, according to the interest rate of 7.4 per cent, which is compounding annually.
The minimum amount required to open an account in this scheme is Rs 1000, which can go up to over Rs 15 lakh that can be deposited in the SCSS account. If the amount to open the account is less than Rs 1 lakh, it can be opened by paying cash, and over Rs 1 lakh can be done by cheque.
The maturity period is 3 years which can be further extended by 3 years.
