A Rs 15 lakh investment in the Senior Citizen Savings Scheme (SCSS) or Post Office Monthly Income Scheme (MIS) ensures guaranteed returns with attractive interest rates. SCSS offers quarterly payouts, tailored for senior citizens, with a current interest rate of 8.20%, while MIS provides monthly payouts with a 7.4% interest rate. Both schemes are government-backed, making them safe options for risk-averse investors seeking steady income. These schemes are ideal for those looking to secure stable, long-term returns without market volatility.
SCSS vs MIS: Which can provide higher income on Rs 15 lakh investment for 5 years; see calculations
Investing Rs 15 lakh in the Senior Citizen Savings Scheme (SCSS) or Post Office Monthly Income Scheme (MIS) offers secure, government-backed returns with regular payouts, making them ideal for low-risk, stable income.
ZeeBiz WebTeam | Sep 13, 2024, 02:29 PM IST
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Features of SCSS:
Deposit Limits:
Minimum deposit required is Rs 1,000, with deposits made in multiples of Rs 1,000.
The maximum investment limit is Rs 30 lakh, effective from 01.04.2023.
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Account Options
- Both spouses can open separate single or joint accounts.
- In joint accounts, the entire deposit is considered attributable to the first account holder.
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Nomination Facility
A depositor can nominate one or more persons, and this nomination can be modified or canceled anytime.
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Withdrawal & Closure
- Early withdrawals are allowed but incur a penalty.
- The deposited amount is paid after the expiry of 5 or 8 years, depending on whether the account is extended.
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Returns on Rs 15 Lakh Investment
If you invest Rs 15 lakh in SCSS:
- Maturity Amount: Rs 21,15,004.23
- Quarterly Interest Payout: Rs 30,750.06
- Total Interest Earned (5 years): Rs 6,15,001.23
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Features of POMIS:
Deposit Limits:
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- Minimum deposit of Rs 1,000, in multiples of Rs 1,000.
- The maximum investment limit is Rs 9 lakh for a single account and Rs 15 lakh for joint accounts.
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Interest Rate
The current interest rate is 7.4% per annum, with interest disbursed monthly.
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Lock-in Period
The lock-in period is 5 years. Premature withdrawals attract penalties depending on the timing of withdrawal.
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Account Options
- A joint account can be opened by up to three individuals. In joint accounts, all account holders have equal rights.
- POMIS accounts can also be opened for minors, with a withdrawal allowed when they turn 18.
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Account Transfer
The account can be transferred between post offices across India if needed.
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Auto-withdrawal of Interest
Monthly interest can be automatically transferred to a savings account via PDCs or ECS.
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Taxation
The interest earned is not subject to TDS, but the investment does not qualify for tax benefits under Section 80C.
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Returns on Rs 15 Lakh Investment
If you invest Rs 15 lakh in POMIS:
- Monthly Interest Payout: Rs 9,250