Post Office Savings Scheme: Senior citizens in India are not yet too compatible with digital technology, as they are not tech savvy. Because of this, post office savings schemes are still especially popular among them, apart from other people. Several savings schemes offered by the India Post are some of the most popular risk-free savings schemes in the country. For the average middle class citizen in India, investing in good schemes with fixed and good rates of interest remains among the topmost priorities. This holds true for senior citizens, who heavily depend on money earned from savings after their retirement.
To enable senior citizens get a fixed income after retirement, the post office has in place the Senior Citizen Savings Scheme, or SCSS. As the name suggests, the scheme is for senior citizens introduced by India Post. It is meant for Indians above the age of 60, which means that the subscriber must be 60-years-old or above on the date of opening this scheme. However, there is a place for reservations for certain beneficiaries under conditions. Through this, subscribers can get a decent amount of returns and a guaranteed income from the post office.
Post Office Senior Citizen Savings Scheme Calculator
If a subscriber makes a deposit of Rs 8,334 monthly in this policy every month, he or she gets an amount of around Rs 7 lakh after five years when the account matures. Let us say that an account holder makes a deposit of Rs 8,334 per month. In this way, annually, the subscriber will make a deposit of Rs 1 lakh. This in turn means that in 5 years, the deposit amount will be Rs 5 lakh. With interest, the amount will be around Rs 7 lakh. This is because the interest under this scheme is 7.4 per cent as of now. If we calculate accordingly, the interest amount stands at Rs 1 lakh 85 thousand. The gross amount, therefore, stands at Rs 6,85,000 over a period of five years. The interest is calculated quarterly under this scheme, which means that the beneficiary will get an interest amount of Rs 9,250 each quarter. This is similar to the rate of interest provided by PPF accounts.
Maturity Period and Interest Rate
As cited above, the interest rate under this scheme is 7.4 per cent. The maturity period under this scheme is 5 years, but can be extended beyond that. A beneficiary can apply for a one-time extension of three years to get more benefits within one year of maturity of the account.
Eligibility
Any person aged 60 years or above can open an account under the Post Office Senior Citizen Savings Scheme. However, civilian employees above the age of 55 can also open an SCSS account within one month of getting retirement benefits. For Defence employees, the limit is 50 years.
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