Post Office Savings Scheme: Senior citizens in India are still not adapted to digital technology, as they are not tech savvy. Because of this, post office savings schemes are still particularly popular among them, among others. The multiple savings plans offered by India Post are some of the most popular risk free savings plans in the country. For the average middle class citizen in India, investing in good schemes with fixed and good interest rates is one of the top priorities. This is true for senior citizens, who are heavily dependent on the money earned from savings after their retirement.
To enable senior citizens to get a fixed income after retirement, the post office has the Senior Citizens Savings Scheme, or SCSS. As the name suggests, this scheme is for senior citizens launched by India Post. This is for Indians above 60 years of age, which means the subscriber should be 60 years of age or above as on the date of opening of the scheme. However, there is reservation in place for certain beneficiaries under conditions. Through this, subscribers can get good returns and guaranteed income from the post office.
Post Office Senior Citizen Savings Scheme Calculator
If a customer makes a monthly deposit of Rs 8,334 in this policy every month, then after five years of account maturity, he gets an amount of about Rs 7 lakh. Explain that an account holder deposits Rs 8,334 every month. In this way the customer will deposit one lakh rupees annually. This means that in 5 years the deposit amount will become Rs 5 lakh. This amount including interest will be around Rs 7 lakh. This is because the interest under this scheme as of now stands at 7.4 per cent. Calculating accordingly, the amount of interest is Rs 1 lakh 85 thousand. Hence, the gross amount over a period of five years is Rs.6,85,000. The interest under this scheme is calculated on a quarterly basis, which means that the beneficiary will get an interest amount of Rs 9,250 every quarter. This is similar to the interest rate offered by PPF accounts.
Maturity period and interest rate
As mentioned above, the interest rate under this scheme is 7.4 percent. The maturity period under this plan is 5 years but can be extended beyond that. A beneficiary can apply for a lump-sum extension of three years to avail higher benefits within one year of the maturity of the account.
eligibility
Any person 60 years of age or above can open an account under the Post Office Senior Citizen Savings Scheme. However, civilian employees above 55 years of age can also open SCSS account within one month of receiving retirement benefits. For Defense employees, the limit is 50 years.
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