SCSS (Senior Citizen Savings Scheme) Account

SCSS (Senior Citizen Savings Scheme) Account

What is it?
This is an account that one can open in the Post Office.
As the name suggests, its for Senior citizens.

Current interest rate is 9.2%

Max amount that can be invested in 1 account: 15L
Min amount: 1000 Rs
Maturity: 5 years
Can I have more than 1 account: Yes, but max in one account is 15L
Nomination available: Yes
Transferrable: Yes
Can it be extended: Yes (for 3 years)
TDS deducted: Yes

Note: Interest is paid quarterly.

So for 15L deposited, at a rate of 9.2%, the interest for the year is 1.38L (34500 paid quarterly).
So if you have 4 accounts (15L*4 = 60L), you will get 1.38L quarterly.

You can use this as a pension for yourself.

Will this be the interest when I am 60?
Good question, I am certain it won't be. Depending on your age, this scheme may not even be around at that time :)

Thoughts?

Monthly Income scheme from the Post Office (POMIS)

We have a monthly income scheme from the post office.

Interest rate: 8.4% pa (payable monthly)
Maximum Investment: 4.5L (individual) and 9L (joint)
Nomination facility: Available
Transferable: Yes
Can I open multiple accounts: Yes but sum of all can't exceed the max amount mentioned above.
Maturity Period: 5 years

So, here one can get a monthly income of (4.5L * 8.4/100 = 37800/12 =) 3150 Rs
For 9L, it will be 3150 * 2 = 6300 Rs

One can use this option in many ways:

• Get the monthly income and use to buy an SIP in a fund
• Get the monthly income and use it to make an RD (monthly investment amount)

 Let me know if you ca think of some other ways on the same.