Post Office Scheme - This Post Office scheme offers high interest rates, learn the full details.

Friends, human life is full of uncertainties, where anything can happen at any time. Therefore, we must be prepared for the future, especially financially. For senior citizens looking for a secure and stable income source after retirement, the Post Office Senior Citizens Savings Scheme (SCSS) is one of the best government-backed investment options. Let's learn the full details about this scheme.

Eligibility:

Any Indian citizen aged 60 years or above can open an SCSS account. Retired defense personnel can also invest, subject to certain conditions.

Investment Limit:

The minimum investment starts at ₹1,000, while the maximum limit is ₹30 lakh per person.

Attractive Interest Rate:

For the second quarter of FY 2025-26, the interest rate is 8.2% per annum, making it the highest among small savings schemes.

Tax Benefits:

Investments made under SCSS are eligible for a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act.

Quarterly Interest Payments:

Interest is credited directly to the investor's account every quarter, ensuring a steady flow of income—ideal for managing monthly expenses.

Maturity and Extension:

This scheme matures in 5 years and can be extended once for 3 years, ensuring long-term financial stability.

Premature Withdrawal Rules

If funds are withdrawn before maturity, the following deductions apply:

Before 1 year: No interest is payable.

Between 1-2 years: 1.5% of the deposit amount is deducted.

Between 2-5 years: 1% of the deposit amount is deducted.

Joint Account Option

A joint account can be opened with your spouse, which not only increases financial flexibility but also increases the family's total interest income—providing peace of mind during the golden years.