Among the post office savings schemes, there is a special scheme for senior citizens – Senior Citizens Savings Scheme. This scheme is known to be a better option for investment. You can open a Senior Citizens Savings Scheme account by visiting your nearest post office branch. It’s quite easy. The thing to note is that deposit can be made only once in this account. The deposit amount must be in multiples of ₹1,000. Maximum deposit limit is ₹30 lakh. This scheme is for 5 years.
How much return are you getting?
At present, 8.2% annual interest is being given on Senior Citizen Savings Scheme account. The option of auto-credit of interest or ECS credit facility is available in the savings account (if an account holder does not claim interest every quarter, no additional interest will be earned on such interest). If the total interest in all accounts including SCSS exceeds the prescribed limit in a financial year, Tax Deducted at Source (TDS) is applicable unless Form 15G/15H is submitted.
Returns of ₹1,23,000 on ₹3,00,000 deposit
According to the calculations of cleartax, if you deposit ₹ 3,00,000 in the Post Office Senior Citizens Savings Scheme account today, then after 5 years you will get ₹ 1,23,000 as return. According to the calculation, the quarterly interest will be Rs 6150. That means in the end you will have a total of ₹ 4,23,000 deposited.
Note these things
Maturity and Payment Terms
The amount deposited while opening the account will be paid after 5 years from the date of account opening. If the account has been extended, payment will be made at the end of every 3 year block period (extension period).
basic rules
The maturity of the account is 5 years, which can be extended once for an additional 3 years (total up to 8 years). According to some updated rules, extensions are possible in multiple 3-year blocks, but most sources currently allow a one-time 3-year extension.
Option to open a new account after extension
If the existing account (or accounts) is closed, the depositor can re-open a new account or accounts as per his requirement. While opening a new account, investment can be made only within the maximum total deposit limit (₹ 30 lakh).
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