As we age, our patience decreases. The more we work hard, the less we earn. Spend what you have saved till then. If there is no pension coming, we can save the money we have with interest.
Savings: As we age, our patience decreases. The more we work hard, the less we earn. Spend what you have saved till then. If there is no pension coming, many people want to save the money we have and spend the time with the interest. For this, along with a good interest rate.. we want to save our money where it is safe. Money in banks is not safe.. Interest is low. And even if the private companies offer a little more than the interest rates given by the banks, there is a doubt whether the money is safe or not. For such people, the Indian Postal Department of the Central Government has made a scheme available for senior citizens. The savings scheme offered by the Department of Posts for senior citizens offers an annual interest rate of 7.4%. This is higher than the interest rate offered on fixed deposits by many banks and financial institutions, including public sector giant SBI. Older people are more interested in risk-free investments. They think that it is not appropriate to invest their hard-earned money in old age on risky investments. Generally they consider post office schemes as a suitable investment vehicle. Senior Citizens Saving Scheme (SCSS) is also one of the post office savings schemes for such people.
It is a government backed, risk free, post office scheme sought by senior citizens. By investing in this scheme, senior citizens can save Rs. Earn up to 2 lakhs. Only senior citizens are eligible to invest in this scheme. Anyone above 60 years can invest from Rs.1000 to Rs.15,00,000. One can go to any nearby post office and open an account and invest. Like other regular fixed deposits, this scheme has a lock-in period of 5 years. Also, the income from this scheme is not taxable under Section 80C of the Income Tax Act.
If we consider how the income will be generated through this scheme, if the government thinks that the current interest rate will continue. Interest income of 27 thousand 750 rupees will be earned. That is, Rs. 1,11,000 will earn interest. That is, after the maturity period of five years, the person will have Rs. 5,55,000 will get the maturity amount. Also, whatever interest rate is prevailing on the day of deposit, the same interest rate is locked in for five years from the end of the maturity period. The scheme also includes the facility of opening a joint account. That is, both husband and wife can open a joint account together. In case of joint account, maximum Rs. 30 lakhs can be invested. If they do that, they will get Rs. 2,22,000 as interest income.
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