Post Office Saving Schemes for Senior Citizens

Post Office Saving Schemes for Senior Citizens

There are multiple Post Office Saving Schemes for Senior Citizens which can be opened to cover monthly expenses or for retirement. Based on your goals, you can select one of the Post Office Saving Schemes mentioned below along with interest rates. The schemes include Post Office Saving Accounf, Recurring Deposit, Time Deposit (Fixed Deposits), Monthly Income Scheme (MIS), Senior Citizen Saving Scheme (SCSS), etc.

Table of Contents

Let us understand Post Office Schemes for Senior Citizens in detail.

1. Post Office Saving Account (SB)

Below are some of the important features of Post office Savings Account:

  • You can easily open a Saving Account in Post office that helps you to save your money to get some interest on quarterly basis
  • You can withdraw and deposit anytime based on your requirements
  • Current interest rate in Post Office Savings Account is 4% annually
  • Only one account can be opened by a person, you cannot have multiple saving account in post office against your name
  • You can also open a joint account with your spouse to save in savings account
  • In case of death of the joint holder, the survivor holder will be the sole owner of the account
  • Minimum deposit in savings account is R.s 500 and there is no maximum deposit limit
  • Minimum withdrawal amount is Rs. 50
  • You can claim maximum of Rs. 50,000 interest amount under Section 80TTB to save income tax as a senior citizen

ALSO READ: Savings Account Interest Calculation

2. Recurring Deposit

  • Recurring Deposit is a way to Save systematically for a specific financial goal
  • In case you want to accumulate Rs. 60,000 after 6 months, you can start Recurring Deposit (RD) to save Rs. 10,000 every month, that will help you to reach your goal in next 6 months
  • Post Office Recurring Deposit helps you to save for your financial goal easily, using cash or cheque
  • Minimum deposit is Rs. 100 every month
  • It comes with a tenure of 5 years, so if you have a conservative financial goal of 5 years, you can open recurring Deposit in post office
  • Current interest rate is 6.7% that is compounded on quarterly basis

ALSO READ: Recurring Deposit Interest Calculation Examples

3. Fixed Deposit (Time Deposit)

  • Fixed deposit or time deposit in post office helps you to save for a future goal
  • It also helps you to earn interest on your deposits
  • Current interest rate in Post Office Fixed Deposit is 6.9% for 1 year tenure
  • You can open fixed deposit for 1 year, 2 years, 3 years and 5 years tenure. Based on the tenure, the interest rate will be set for you on these time deposits
  • You can check interest rates for all Post Office Saving Schemes for Senior Citizens in this Post Office Interest rates article
  • Fixed deposit in post office can be opened with minimum amount of Rs. 1000
  • You get quarterly compounded interest in fixed deposits

Watch below video on Fixed Deposits interest calculation

Fixed Deposits Interest Calculation Video

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4. Monthly Income Scheme (MIS)

  • Post Office Monthly Income Scheme or Post Office MIS is a fixed income scheme that gives regular payout every month on your deposits
  • This is a Post office scheme for those looking for decent returns on their lump sum investment
  • The tenure for Post Office MIS Scheme is 5 years, which means your money will be locked in for 5 years
  • However, you can withdraw the amount if you are ready to bear some charges after 1 year of account opening.
  • You can deposit minimum of Rs. 1000 and maximum of Rs. 9 Lakh in Single account and Rs. 15 Lakh in joint account of this scheme
  • Maximum 3 adults are allowed as joint holders in this monthly scheme of post office
  • The current interest rate in Post Office Monthly Income Scheme is 7.4% annually
  • This interest rate is reviewed by government of India every quarter
  • The interest on which you open Post Office MIS will be fixed throughout 5 years of your tenure

Use Calculator: Post Office Monthly Income Scheme Calculator

5. Senior Citizen Saving Scheme

  • Investing in SCSS (Senior Citizen Saving Scheme) is a good opportunity for senior citizens above 60 years to make money
  • SCSS comes with a tenure of 5 years, where you’ll receive quarterly interest after every 3 months
  • Minimum deposit amount is Rs. 1000
  • An individual can invest a maximum amount of Rs.30 lakh in SCSS account
  • Current Interest rate in SCSS is 8.2%
  • The interest amount is paid on quarterly basis, and the principal amount you had saved will be returned back to you at the end of tenure
  • You can use the SCSS Calculator to calculate quarterly interest on your Senior citizen saving scheme

WATCH VIDEO: SCSS Interest Calculation Video

6. National Saving Certificate

  • NSC encourages small and mid-income investors to save.
  • Additionally, you also get Income tax benefit. NSC investments up to Rs 1.5 lakhs is exempt from tax under Section 80C of the Income Tax Act.
  • They come with a lock-in period of 5 years.
  • NSC certificates earn fixed interests. The current rate of interest is 7.7%
  • Like other fixed-income products PPF and Post Office FDs, NSC is also a secure and low-risk instrument.
  • The minimum deposit is Rs 100. There is no maximum limit for investment in NSC.
  • There is no TDS for NSC investments. But the interest earned after 5 years in NSC is taxable based on the tax slab rates of individual
  • We get yearly compounding in NSC, which means the interest earned every month is added to the balance at the end of the year, thus earning us more interest amount.

Which scheme is best in post office for senior citizens?

Senior Citizen Saving scheme (SCSS) and National Savings Certificate (NSC) are some of the best schemes in post office for senior citizens as they provide high interest rates, 8.2% and 7.7% respectively compared to other saving schemes in post office.

Senior citizens can get quarterly interest payout in Senior citizen saving scheme and in NSC, they’ll get interest after 5 years tenure, so it depends on their financial goals, which one is best for them.

What is senior citizen 15 lakh scheme?

Senior Citizen 15 Lakh scheme is the MIS (Monthly Income Scheme) where the joint holders can get monthly income based on the deposits made to cover for monthly expenses. So if you make Rs. 15 lakh as deposit in monthly income scheme (MIS), at 7.4% interest rate, you’ll get Rs. 9250 as monthly income.

This income can help senior citizens to cover the monthly expenses that occur of for some other needs after their retirement.

Also, senior citizens have the option to open Senior citizen saving scheme with 15 lakh which is another great post office scheme for them.

What is the interest for senior citizen in Post Office savings bank?

Savings bank in post office offers 4% interest rate annually to senior citizens. This is almost 1% to 1.5% high compared to savings account open in Banks or other financial institutions.

Conclusion

So as discussed, some of the important Post Office Saving Schemes for Senior Citizens are senior citizen saving scheme (SCSS) that provides quarterly interest payment, monthly income scheme (MIS) that provides monthly income to cover for expenses, Recurring deposits to achieve financial goals in future, Fixed deposits or time deposits.

These post office schemes helps the senior citizens to achieve their financial goals of either to cover for monthly expenses or for some other needs.

Some more Reading:

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