Post Office MIS vs SCSS: Where will senior citizens get more benefits? Understand the calculation of lump sum investment of ₹ 1 lakh

The post office is offering many schemes as a better and safer investment for senior citizens. This includes good options like Monthly Income Scheme (Post Office Income Scheme), Senior Citizen Saving Scheme (SCSS). On the basis of which a good retirement planning can be done.

But before planning for the future, it is necessary to understand the returns of both these schemes, so that the goals set for the coming days can be met.

post office monthly income scheme

First of all, let’s talk about the Monthly Income Scheme (MIS) of the post office. Earning is done every month by investing lump sum money in this scheme. This scheme matures in 5 years. The good thing is that the interest on MIS has increased to 7.1%.

MIS calculator

Lump sum investment: ₹1 lakh
Lock-in period: 5 years
Interest rate (annualised): 7.1%
Monthly income: ₹592
Interest earned in 5 years: ₹35,500

Special features of Monthly Income Scheme

A maximum of ₹ 4.5 lakh can be invested from a single account.
– You can invest a maximum of ₹ 9 lakh from a joint account.
Investment in the scheme can be started with a minimum of ₹ 1000 every month.

Senior Citizen Saving Scheme

Senior Citizen Savings Scheme (SCSS) is designed for Indian citizens above 60 years of age. It is run by the government. The deposit matures after 5 years from the date of opening the account. However, this period can also be extended for another 3 years. But the period can be extended only once. Interest of 8% is available annually on this.

SCSS Calculator

Lump sum investment: ₹1 lakh
Tenure: 5 years
Interest rate (per annum): 8%
Quarterly interest earning: ₹2000
Interest earning in 5 years: ₹40,000

Important things related to SCSS

– Investment in this scheme can be started from ₹ 1000 – You
can invest a maximum of ₹ 15 lakh in the
scheme – You can claim tax deduction of up to Rs 1.5 lakh under section 80C of the IT Act, 1961 in the scheme