By investing in Senior Citizen Savings Scheme, you can earn more than FD

International Senior Citizen Day is being celebrated today i.e. on 21st August. On this occasion, we are telling about the Senior Citizen Saving Scheme of the Post Office. Under this scheme, you are offered 7.4% interest i.e. in this scheme, you get more interest than the bank's fixed deposit. Today we are telling you about this scheme.
After 60 years of age or above, the account can be opened by visiting the post office. However, a person taking VRS who is more than 55 years but less than 60 years can also open this account.
Apart from this, people who have retired from Defense (Department of Defense), those above 50 years and below 60 years of age can also invest in this scheme. However, in this situation, the investment has to be made within 1 month of retirement.
Under the Post Office Senior Citizen Savings Scheme, an account can be opened for only Rs 1000. You can invest up to a maximum of Rs 15 lakh in this scheme.
Money can be invested under this scheme for 5 years. After maturity, this scheme can be extended for 3 years. Although you can close the account before 5 years, but you have to pay a penalty for doing so.
Investing under this scheme is getting the benefit of tax exemption under section 80C of the Income Tax Act. That is, if you invest up to Rs 1.5 lakh in it, you can claim tax exemption on this amount. A joint account can also be opened under this scheme. However, this interest has to be taxed.
Under this scheme, interest is accrued on a quarterly basis and is credited on the first working day of April, July, October and January. The maturity period is 5 years but premature withdrawal can be done even after 1 year. Premature withdrawal after 1 year is charged at 1.5% of the deposit amount. After 2 years 1% amount is deducted.

For more information:- https://www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx