Srinagar, Nov, 29: The Post Office offers a wide range of investment schemes for the earning population of India. Most of the schemes of the Post Office offer a high-interest rate on your investment, which can help you increase your savings by a significant amount.
Another such scheme by the Post Office is the Senior Citizen Savings Scheme (SCSS). Through this scheme, investors can get impressive interest in their savings. The current interest rate on the Post Office SCSS scheme is 7.4 percent.
The Senior Citizen Savings Scheme of the Post Office is most popular among investors who are retired and are seeking to increase their savings. This scheme is safe and can give you a high return on your hard-earned savings over a period of time.
People who are interested in this scheme of the Post Office can open their accounts with as little as Rs 1000. Investors above the age of 60 can only open accounts in the SCSS scheme. If one has opted for the Voluntary Retirement Scheme (VRS), one can still open this account.
The Senior Citizen Savings Scheme gives the investor the option to earn up to Rs 14 lakh by the end of the maturity period. The investor will need to invest a lump sum of Rs 10 lakh in the Post Office scheme, and after five years, they will receive Rs 14,28,964 at a 7.4% interest rate.
As per this calculation, investors will get over Rs 4,28,000 as interest on their investments. It must be noted that the maximum amount that can be kept in the Senior Citizen Savings Scheme account in the Post Office is Rs 15 lakh.
The maturity period under this scheme is five years but investors can extend this amount by three more years. The account can be opened with less than Rs 1 lakh in cash, with the same interest rate. The investments in the scheme are exempted under section 80C of the Income Tax Act.
One will have to visit their nearest Post Office branch and fill out the form for the scheme to open the account under the Senior Citizen Savings Scheme. They will also have to present all the necessary documents required by the officials.