Post Office Senior Citizen Savings a/c Policy: Invest only Rs 1000 to get Rs 14 lakh on maturity, check details

New Delhi: There are several Post Office schemes that offer decent returns that range from short term plans to long term investments. Those with low risk appetide can can put their money in Post Office schemes, because they are safe from the market hostility. 

Senior Citizen Savings Scheme (SCSS) is one such policy which gives bumper returns. As the name suggests, SCSS is a scheme introduced by Post Office for senior citizens. Investors aged 60 or above can only open accounts in SCSS. However, you can also invest in the policy if you have opted for Voluntary Retirement Scheme (VRS).  

Currently, Post Office is providing a 7.4 per cent interest on investments made under Senior Citizen Savings Scheme. The scheme could fit the bill for recent retirees as one has to make one time investments in the investment policy. 

At the time of maturity, investors get the invested principal along with the generated interest. The minimum amount that one needs to invest to open an account in Senior Citizen Savings Scheme is just Rs 1000. 

How can investors get Rs 14 lakh in 5 years? 

Investors will need to invest a minimum of Rs 10 lakh in the Senior Citizen Savings Scheme to get about Rs 14 lakh at the time of maturity. You will need to invest Rs 10 lakh as a lump sum so that you can get Rs 14,28,964 at a 7.4% interest rate. 

Out of the total Rs 14,28,964 corpus, Rs Rs 4,28,964 is the interest on investment while Rs 10 lakh is your invested sum. One can invest a maximum of Rs 15 lakh in the Senior Citizen Savings account.  

If you’re planning to open an account in the Senior Citizen Savings scheme, you can deposit up to Rs 1 lakh in cash. If you’re planning to invest more than Rs 1 lakh, you will need to write a cheque or use other modes of payment.  

Moreover, investors also get tax benefits under section 80C of the Income Tax Act for their investments in the Senior Citizen Savings scheme.