Post Office Schemes: Although post office investments are thought to be extremely safe, post office schemes currently outperform bank schemes in terms of security and return on investment. The Post Office Senior Citizen Savings Scheme, which is specifically for seniors and offers more than 8% annual interest on investments, is one such fantastic programme. When it comes to bank savings accounts, senior citizens receive lower interest rates than this.
Post Office’s Premier Program for Regular Income
This government programme is among the post office’s most popular programmes in terms of regular income and tax exemption. You can start investing with a minimum of Rs 1,000 by creating an account here. In addition, the Senior Citizens Savings Scheme‘s maximum investment limit of Rs 30 lakh has been set. Being financially secure after retirement can be greatly aided by this post office scheme. This allows any individual or spouse who is 60 years of age or older to open a joint account.
The Five-Year Investment Rule in SCSS
The account holder must make five years’ worth of investments in the Post Office Senior Citizen Savings Scheme. However, there is a penalty that the account holder must pay under the rules if this account is closed before this time. Open your SCSS account with ease by going to the post office that is closest to you. In certain instances, this scheme has also allowed for an age limit relaxation. In the same way that an individual enrolled in VRS may be older than 55 or younger than 60 at account opening, retired military personnel may also be older than 50 or younger at account opening; however, certain restrictions apply.
The Competitive Edge of Post Office SCSS Interest Rates
While the Post Office Senior Citizen Savings Scheme offers 8.2 percent interest, all national bank senior citizens can receive between 7.00 and 7.75 percent for the same five-year fixed-term period. granting a maximum of 100% interest rate. Looking at the bank’s fixed-rate accounts (FD) rates, the biggest bank in the nation, SBI, offers senior citizens 7.50 percent on five-year FDs; ICICI Bank, 7.50 percent; Punjab National Bank, 7.50 percent; and HDFC Bank, 7.50 percent annual interest.
SCSS Account Holders Enjoy Annual Exemption under Section 80C
The account holder in this post office plan also benefits from a tax exemption. Under Section 80C of the Income Tax Act, an individual investing in SCSS is eligible for an annual tax exemption of up to Rs 1.5 lakh. The interest amount is to be paid every three months under this scheme. The first date of the months of April, July, October, and January is when this interest is done. The account is closed and the full amount is given to the designated nominee if the account holder passes away before the maturity period is over.
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