Senior Citizen Savings Plan: The best plan for seniors, with 8.2% interest and other tax advantages; see details

Senior Citizen Savings Plan: The best plan for seniors, with 8.2% interest and other tax advantages; see details

Senior Citizens: Under this program, senior citizens get 8.2 percent interest; nevertheless, on FDs with the same duration, i.e., five years, all national banks provide senior citizens 7.00 to 7.75 percent interest.

Although post office investments are thought to be quite secure, post office plans now outperform bank schemes in terms of security and return on investment. The Post Office Senior Citizen Savings Scheme (Post Office SCSS Scheme), which is specifically for seniors and offers more than 8% yearly return on investments, is one such fantastic program. When it comes to bank savings accounts, older folks get lower interest rates than this.

The minimum investment amount is Rs 1000.

This government program is among the post office's most popular programs in terms of regular revenue and tax exemption. You may 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 might be greatly aided by this post office initiative. This allows any individual or couple who is 60 years of age or older to create a joint account.

5 year maturity period

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 regulations if this account is terminated before this time. Open your SCSS account with ease by going to the post office that is closest to you. In some instances, this approach has also allowed for an age restriction 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 people may also be older than 50 or younger at account opening; however, certain restrictions apply.

greater yield compared to comparable bank FDs

While the Post Office Senior Citizen Savings Scheme offers 8.2 percent interest, all national bank senior citizens may get 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 people 7.50 percent on five-year FDs; ICICI Bank, 7.50 percent; Punjab National Bank, 7.50 percent; and HDFC Bank, 7.50 percent yearly return.

Moreover, tax exemption is offered.

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 program. The first date of the months of April, July, October, and January is when this interest is done. The account is closed and the whole balance is sent to the designated nominee if the account holder passes away before the maturity term is finished.