The Post Office Senior Citizen Scheme is a small savings scheme available to investors aged 60 and above. It offers an annual interest rate of 8.2%.
For a stress-free retirement period, it is crucial to start investing today. If you are looking for secure government schemes that offer financial security and stable returns, consider investing in Senior Citizens Savings Scheme offered by the Post Office. Let’s know why it’s an excellent choice for your retirement.
The Post Office Senior Citizen Scheme is a small savings scheme available to investors aged 60 and above. It offers an annual interest rate of 8.2%. You can open an account either as single or joint investors.
Investing in the Post Office Senior Citizen Scheme involves committing to a 5-year tenure. It can be extended for an additional 3 years upon maturity. The investment requires a lump sum amount rather than monthly instalments. Individuals can invest anywhere between Rs 1,000 to Rs 30 lakh in this scheme.
Under the Post Office Senior Citizen Scheme, if your annual interest exceeds Rs 50,000, TDS will apply. However, if the interest earned is less than Rs 5,00,000 annually, no tax is payable. For example, if you invest Rs 5 lakh annually, in 5 years the total amount will grow to Rs 7 lakh 5 thousand, with Rs 2,05,000 being the interest amount subject to TDS.
Investors can also close the account prematurely; however, some penalty amounts may be applied. Closing the account within the first year of opening will result in no interest being paid. If closed between 1 to 2 years, a deduction of 1.5% of the principal amount will be applied.