Achieving financial independence is crucial for everyone, especially as we approach retirement age. While there are numerous financial schemes available, one particular plan from the post office stands out. It not only strengthens you economically but also supports you during your retirement years.

Senior Citizens Savings Scheme (SCSS): An Overview

What is SCSS?

The Senior Citizens Savings Scheme (SCSS) by the post office is designed for individuals aged 60 and above. It’s also available for those who have taken Voluntary Retirement Scheme (VRS). This scheme offers a guaranteed return with an annual interest rate of 8.2%.

How Does It Work?

If a senior citizen deposits a lump sum of ₹15 lakhs, they can earn ₹10,250 every quarter. Over five years, this interest alone can generate a profit of ₹2 lakhs. For those investing their retirement funds, a maximum deposit of ₹30 lakhs can yield an annual interest of ₹2,46,000. This translates to a monthly income of ₹20,500 or ₹61,500 quarterly.

Eligibility Criteria

Individuals aged 60 and above.
Retired civilians aged 55 to 60.

Retired defense personnel aged 50 to 60.

Interest Payment and Maturity

The interest is paid quarterly, applicable on 31st March, 30th June, 30th September, and 31st December from the date of deposit. The account can be extended for an additional three years upon maturity.

Investment Returns: A Breakdown

₹5 Lakhs Investment

Quarterly Interest: ₹10,250
Annual Interest: ₹41,000
Maturity Amount: ₹7,05,000

₹10 Lakhs Investment

Quarterly Interest: ₹20,500
Annual Interest: ₹82,000

Maturity Amount: ₹14,10,000

₹15 Lakhs Investment

Quarterly Interest: ₹30,750
Annual Interest: ₹1,23,000

Maturity Amount: ₹21,15,000

₹20 Lakhs Investment

Quarterly Interest: ₹41,000
Annual Interest: ₹1,64,000

Maturity Amount: ₹28,20,000

Minimum and Maximum Investment

The scheme allows a minimum investment of ₹1,000 and a maximum of ₹30 lakhs. Investments under this scheme are eligible for tax deduction under Section 80C.