With changing times, everyone’s biggest concern after retirement is regular income, as salaries stop coming at that point, and they want to generate returns from their savings to ensure steady income. So, if you are looking for an investment plan that provides salary-like monthly income, consider this one.
Post office scheme can benefit you. The Post Office has been offering the Senior Citizen Savings Scheme (SCSS) for quite some time. The scheme was specially designed for retirees, to ensure that they receive regular income after retirement without worrying about expenses.
Know what is Post Office Scheme
Senior citizens investing in this scheme earn an annual interest rate of 8.2%, the highest interest rate, and the government also provides income tax benefits of up to ₹1.5 lakh under Section 80C.
For example, if you invest ₹30 lakh at once, at a government-fixed interest rate of 8.2%, the investment will generate an annual interest rate of ₹2.46 lakh. Divide this amount by ₹20,500 per month. The scheme has a maturity period of 5 years, meaning around ₹20,500 will be deposited directly into your bank account every month, which will be crucial to meet your post-retirement needs.
People above 60 years of age can avail the benefit
Giving more information to Local 18, Ambala City Postmaster Rajesh Mann said that the post office is running a Senior Citizen Savings Scheme for senior citizens, where people above 60 years of age can avail the benefits.
He said that the government offers 8.2% annual interest rate on deposits under this scheme. The scheme is available to people above 60 years of age as well as voluntary retirees between the age of 55 to 60 years. Simply visit your nearest post office and open an account under the Senior Citizen Savings Scheme with a minimum investment of ₹1,000 and a maximum investment of ₹30 lakh.
Higher returns compared to FDs and savings accounts
He said that it has a tenure of up to 5 years, and senior citizens will get higher returns than FD or savings account. He said that under this scheme, he earns a total of 8.2% annual interest on his savings, which is deposited into his account by the post office, thereby making him a substantial profit.
To open an account under the scheme, a form has to be filled and documents such as Aadhaar card, PAN card, proof of age, and two passport-size photographs have to be submitted, he said. In addition, if a person has retired before the age of 60, certain documents providing proof of income from the department will also have to be submitted.