Big relief: get up to ₹20,000 monthly pension under this scheme

New Delhi (The Uttam Hindu): Many people worry about a steady income after retirement when their regular salary stops. The Senior Citizens Savings Scheme (SCSS) is designed to provide reliable income during this stage. This government-backed scheme, available through banks and post offices, currently offers an interest rate of 8.2% per year, making it one of the highest-return fixed-income options.

Under this scheme, individuals can invest up to ₹30 lakh. At the current interest rate, this can generate around ₹2.46 lakh annually. The interest is paid every quarter, which means about ₹61,500 every three months or roughly ₹20,500 per month as regular income.

The scheme is mainly for people aged 60 years and above, while some retirees can open an account from the age of 55 under specific conditions. Investments qualify for tax benefits under Section 80C, although the interest earned is taxable. The scheme has a five-year lock-in period, which can be extended for another three years, providing a stable income option for retirees.