Post Office Savings Scheme: What is Post Office Senior Citizen Savings Scheme, how can one avail its benefits?


Every person wishes to live a comfortable life after retirement. He should not be financially dependent on anyone. But, for this, it is important that after retirement you invest your money in the right place.


If you are looking for an investment option that gives good returns after retirement, then you can invest money in the Post Office Senior Citizen Savings Scheme (SCSS), which is especially for senior citizens. Let us know what the eligibility for this scheme is and how can you avail of it.

What is the eligibility to invest in SCSS?
To invest in the Post Office Senior Citizen Savings Scheme, you must be at least 60 years of age. However, if someone has taken a Voluntary Retirement Scheme (VRS) at the age of 50 years or more, then he can also invest in this scheme. People retiring from the defense sector can also invest money in it.

How much can one invest in SCSS?
You can invest Rs 1,000 to Rs 30 lakh in Senior Citizen Savings Scheme. Earlier the investment limit was up to Rs 15 lakh, which has now been increased. If you want to invest less than Rs 1 lakh, you can open an account by paying cash. But, if you deposit more than Rs 1 lakh, you will have to give a cheque. You can open more than one account, but the total investment amount cannot exceed Rs 30 lakh.

How much return do you get?
8.2 percent interest is available in SCSS. In this, the investment amount matures after five years. The investment can also be extended for three years. If you have invested Rs 10 lakh in the scheme for 5 years, you will get a total of Rs 14.28 lakh. In this, tax exemption is also given on investment of Rs 1.5 lakh under Section 80C of Income Tax.

Is SCSS better than FD?
The answer to this question actually depends on your need and for how long you want to invest. If you want to invest for one, two, or three years, then FD (Fixed Deposit) may be better for you. But, if you want to invest for a longer period than this, then Senior Citizen Savings Scheme would be a good option.


6.9 percent interest is available on 1 year FD. Interest will be available on 2 and 3-year FDs at the rate of 7 percent and on 5-year FDs, interest will be at the rate of 7.5 percent. Whereas, SCSS will give you a higher interest rate of 8.2 percent. In such a situation, if we compare 5-year FD and SCSS, then SCSS is a profitable deal.

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