Looking for income option post retirement? This post office scheme provides Rs 4.10 lakh return on Rs 10 lakh deposit

Retirement Planning: Till the time you draw a monthly salary or run a business, you earn money to run your daily expenses. But as you grow older and approach retirement age, these sources of income may deplete, but your daily expenses never stop. But you need money to spend till your last breath. As a result, it is best that you make investments that can provide you with a regular income after monthly or one-time investments.

The post office runs Senior Citizens Savings Scheme Account that provides quarterly income after making a one-time investment.

A senior citizen can deposit an amount at the time of opening an SCSS account and get income in the form of quarterly income. 

In this write-up, we will tell you how much quarterly income you can draw by depositing Rs 5 lakh, Rs 10 lakh, and Rs 20 lakh in the scheme. Before that know more about SCSS.

Senior Citizens Savings Scheme Account (SCSS) main features

The post office senior citizen scheme provides an 8.2 per cent annual interest rate.

The interest is payable from the date of deposit to March 31/ Sept 30/December 31 in the first instance, and thereafter, on April 1, July 1, October 1, and January 1.

One can make only one deposit in the scheme in multiples of Rs 1,000. The maximum amount should not exceed Rs 30 lakh.

The lock-in period in the scheme is five years. However, an account holder can extend their account 

SCSS: Who can apply?

An individual above 60 years of age; a retired civilian employee above 55 years of age and below 60 years of age; and a retired defence employee above 50 years of age and below 60 years of age can apply for the SCSS account.

SCSS: Tax benefits

Deposits of up to Rs 1.50 lakh in the SCSS scheme qualify for tax benefits under Section 80C of the Income Tax Act.

Interest is taxable if total interest in all SCSS accounts exceeds Rs. 50,000 in a financial year and TDS.

SCSS: What Rs 5 lakh, Rs 10 lakh, and Rs 20 lakh investments will give you   

On a Rs 5 lakh investment, your quarterly interest will be Rs 10,250, while your maturity amount after five years will be Rs 7,05,000.

On a Rs 10 lakh one-time deposit, you can get interest of Rs 20,500, while the maturity amount will be Rs 14,10,000.

If you invest Rs 20 lakh in this scheme, the interest you get will be Rs 41,000, and the maturity amount will be Rs 28,20,000.