The Post Office's Senior Citizens Savings Scheme (SCSS) continues to be one of the most reliable and rewarding investment options for retirees in India. Designed to offer steady monthly income and tax benefits, the scheme is ideal for those looking for secure and regular post-retirement earnings.
Under the SCSS, investors can earn around ₹20,500 per month by depositing ₹30 lakh in a single lump sum. At the current interest rate of 8.2% per annum, the annual return amounts to ₹2.46 lakh, which can be credited as monthly income - a big support for senior citizens seeking financial stability.
High Interest Rate: 8.2% per annum - higher than most fixed deposits.
Tax Savings: Investments qualify for deductions of up to ₹1.5 lakh under Section 80C of the Income Tax Act.
Safe & Government-Backed: Managed by India Post and fully backed by the Government of India.
Flexible Closure: Account can be closed prematurely, subject to small penalties.
Individuals aged 60 years or above can open an account.
Voluntary retirees (VRS) aged 55-60 years and defence personnel retirees aged 50-60 years are also eligible.
Both single and joint accounts can be opened.
The scheme has a 5-year maturity period, which can be extended once for an additional 3 years. Premature closure is allowed - however,
If closed within 1 year, no interest is payable.
If closed after 1 year but before 2 years, 1.5% of the deposit is deducted.
If closed after 2 years but before 5 years, 1% deduction applies.
Interested individuals can visit any nearest Post Office branch to open an SCSS account by submitting ID proof, PAN card, and a passport-sized photograph.