new Delhi: Every penny earned by hard work is very important. In such a situation, it is very important that whenever you make a small or big investment, you get full benefits. If you want to make a profit by investing less time, then you can choose a great scheme present in the post office. In the Senior Citizens Savings Scheme of the Post Office, investors get an interest of 7.4 percent. Let us tell you how you can make 14 lakh rupees in just 5 years.
What is this scheme
Your age limit should be 60 years to open an account under the Senior Citizens Savings Scheme – SCSS. Only people aged 60 years or above can open an account under this scheme. Apart from this, people who have taken VRS, ie Voluntary Retirement Scheme, can also open an account under this scheme. If you invest a lump sum of Rs 10 lakh in the Senior Citizens Scheme, then after 5 years at the interest rate of 7.4 percent (compounding), the total amount will be Rs 14,28,964 at maturity i.e. 14 lakhs. More than Rs. Here you are getting a benefit of Rs 4,28,964 as interest.
These conditions have to be taken care of
The minimum amount to open an account in this scheme is 1000 rupees. Apart from this, you cannot keep more than 15 lakh rupees in this account. Apart from this, if your account opening amount is less than one lakh rupees, then you can open the account by paying cash. At the same time, to open an account for more than one lakh rupees, you have to give a check.
The maturity period of SCSS is 5 years, but this time limit can also be extended if investors wish. According to the India Post website, you can extend this scheme for 3 years after maturity. To increase this, you will have to go to the post office and apply.
Talking about tax, if your interest amount becomes more than Rs 10,000 annually under SCSS, then your TDS gets deducted. However, investment in this scheme is exempt under Section 80C of the Income Tax Act.