It is said that we should save at least 30 per cent of our income every month to avoid future financial problems. Many people invest in LIC, government schemes, fixed deposits, etc., to secure their financial future. Similarly, if you are a senior citizen, you can invest in a scheme that offers good returns. This scheme is from the post office, where you can invest and benefit. Let’s explore this scheme and how you can benefit from joining it. In this article, we will share all the details regarding this scheme.
What is the Senior Citizen Savings Scheme?
The Senior Citizen Savings Scheme is a post office scheme designed specifically for senior citizens. Only individuals who meet the age criteria are eligible to invest in this scheme. The scheme offers a reliable way for senior citizens to invest their money and earn returns.
Who is Eligible to Invest?
To invest in this scheme, the individual must be at least 60 years old. However, government employees who have opted for Voluntary Retirement Scheme (VRS) can also invest in the scheme at the age of 50 or above.
How Much Can You Invest?
Eligible individuals can invest a minimum of Rs. 1,000 in this scheme. The maximum investment allowed is Rs. 30 lakh. For investments below Rs. 1 lakh, cash payments are allowed. However, for investments above Rs. 1 lakh, payment must be made via cheque.
How to Apply for the Scheme?
To apply for the Senior Citizen Savings Scheme, visit the nearest post office. Meet with the concerned officer to complete the necessary formalities, and they will guide you through the application process and enrollment.
What Are the Benefits?
The Senior Citizen Savings Scheme offers a fixed interest rate of around 8.2%. The scheme matures in 5 years, but it can be extended for an additional 3 years if desired. Investors can also avail of a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act.