Post Office Senior Citizen Saving Scheme gives you the opportunity to find financial independence in your old age without having to depend on others for support. The scheme offers an interest rate of 8.2 percent for 5 years.
The post office offers excellent schemes for securing your future financially. Various schemes tailored for the needs of senior citizens serve as a reliable source of financial security in the face of challenges. Senior citizens can find independence at their age without having to depend on others for support.
It is recommended to plan retirement and build a corpus before the actual retirement time. However, you can also start investing in your old age. The Post Office Senior Citizen Saving Scheme offers advantages that are better that the traditional Fixed Deposits (FDs).
Investments
In the Post Office Senior Citizen Saving Scheme, investors can deposit a maximum of Rs 30,00,000. The minimum investment required for this scheme is Rs 1000. Interest is compounded quarterly on the deposited amount, and the scheme matures after 5 years. People aged 60 years and above are eligible to invest in this scheme. There are also certain age relaxation provisions for government employees opting for VRS and defence retirees.
Interest rate
If you invest Rs 30 lakh in the Post Office Senior Citizen Saving Scheme, you can make approximately Rs 12,30,000 in interest over the course of five years. The scheme offers an interest rate of 8.2 percent for 5 years. Therefore, doing the maths, with an investment of Rs 30 lakh, you would receive a total of Rs 42,30,000 after five years.
More benefits
You can also extend the benefits for three more years after the five-year maturity period. The extension can be decided one year before the completion of the maturity period. The same interest rate is applied on the deposited amount.
Tax exemptions
Investments made in the Post Office Senior Citizen Saving Scheme are eligible for tax exemptions under Section 80C of the Income Tax Act. In the event of the demise of the account holder, the nominee receives the entire invested amount.
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