SCSS: After retirement, having a steady, secure monthly income brings peace of mind. At this stage, safe investment options with guaranteed returns are essential. The Post Office Senior Citizen Savings Scheme serves this purpose, offering attractive interest, tax benefits, and regular monthly payouts. Specifically crafted for seniors, it ensures that your savings provide a dependable income without exposing you to market risks.What is SCSS? SCSS is a government-backed investment scheme that currently pays an interest of 8.2% a year, outpacing many bank fixed deposits. You can open an account with a minimum of Rs 1,000 and the upper limit is Rs 30 lakh per individual.Who can invest? Anyone who is 60 or older can invest without restriction. A government employee who chooses voluntary retirement between ages 55 and 60 is also eligible. Retired defense personnel can open an account between ages 50 and 60. Joint accounts may be opened with a spouse, pooling savings together for a shared monthly income.How much can you expect each month? Put in Rs 30 lakh as a single deposit, and you’ll see around Rs 2.46 lakh in interest every year. The interest pays out every quarter, translating to a steady monthly deposit of roughly Rs 20,500. Drop in Rs 20 lakh, and your total return—interest plus principal—will hit about Rs 28.2 lakh after five years. During that time, you’ll see quarterly payouts of Rs 41,000, which works out to about Rs 13,666 each month. Tax benefits on top With SCSS, you can also knock off up to Rs 1.5 lakh a year from your taxable income, thanks to section 80C. Duration and rules The scheme runs for five years but can be stretched another three. Close your account in under a year, and there’s no interest. Close between two and five years, and you’ll lose 1% off your interest rate. Why SCSS works A government guarantee, competitive interest, tax perks, and assured monthly income make SCSS a solid choice for retirees. If you want predictable cash flow after leaving work, this scheme is hard to beat.
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