Post Office Senior Citizen Savings Scheme: Invest Once, Get Guaranteed Rs 20,000 Every Month | Business News

Last Updated:July 19, 2025, 15:27 IST

A lump sum investment of Rs 30 lakh in SCSS gives an annual return of approximately Rs 2.46 lakh, which translates to around Rs 20,500 per month

Any individual aged 60 years or above can invest in SCSS. (AI Generated)

The post office near your home is not just a place to send letters, it also offers safe and reliable investment options. One such scheme is the Senior Citizen Savings Scheme (SCSS), which is backed by a government guarantee. This scheme offers an attractive interest rate of 8.2% per annum, making it a better option than most bank fixed deposits. SCSS is especially beneficial for retirees looking for regular monthly income.

You can start investing in SCSS with just Rs 1,000, and the maximum investment limit is Rs 30 lakh. An added advantage is tax savings under Section 80C, offering deductions of up to Rs 1.5 lakh annually.

Who Can Invest

Any individual aged 60 years or above can invest in SCSS. Civil employees who have taken voluntary retirement between 55 to 60 years, and retired defence personnel between 50 to 60 years, are also eligible. A joint account can be opened with a spouse. The scheme runs for five years, with the option to extend it for another three years.

However, if the account is closed within one year, no interest is paid. If closed between two and five years, the interest amount is reduced by 1% as a penalty. A slightly higher penalty applies for closure before two years.

Regular Monthly Income Of Rs 20,000 Assured

A lump sum investment of Rs 30 lakh in SCSS gives an annual return of approximately Rs 2.46 lakh, which translates to around Rs 20,500 per month. This income is credited quarterly to the account holder’s bank account.

For example, if someone invests Rs 20 lakh, the maturity amount in five years at 8.2% interest will be Rs 28.2 lakh. This includes a quarterly interest payout of about Rs 41,000, totalling Rs 8.2 lakh in five years. It provides a monthly income of roughly Rs 13,666.

SCSS stands out as a secure and stable financial plan for senior citizens. It not only offers excellent returns and tax benefits but also comes with the trust of a government guarantee. For those looking to secure a steady income post-retirement, this scheme is a dependable choice.

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