The Government of India has specially curated a scheme for senior citizens (above 55 years of age). This scheme helps manage expenses after a person retires. Applicants can use the online Post office senior citizen interest calculator before investing in the scheme.
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The Post Office Senior Citizen Scheme acts as an investment option for senior citizens, gaining more than 7% interest on their investment. In addition, this scheme has a maturity period of 5 years that allows its investors to reap the benefits early.
Besides multiple features and benefits, investors can also use the scheme’s online calculator to customize and know plan details beforehand.
Post Office Senior Citizen Scheme interest calculator is an online financial tool that helps you calculate returns over a specific period. You can enter different principal amounts, policy tenure, and rates of interest to know your investment details. This calculator utilizes algorithms that provide accurate information.
Using the Post Office Senior Citizen Scheme interest calculator allows the investors to estimate the interest rate on the principal investment. You can easily use the tool by visiting the website and choosing the scheme of whose returns you want to calculate.
Feed-in the essential information to get further details. Post Office Senior Citizen Scheme interest calculator will ask you to provide the following information to compute the amount:
Rate of interest
Click on calculate. You will get a total breakup of the returns that you gain. This break will consist of the amount you invest, the interest earned over the amount, and the full maturity amount you get.
Example: Suppose you invest Rs. 1000 per month for the tenure of 90 months. The rate of interest is 8.00%. The breakup of maturity amount that you get will be as follows:
Investment amount: Rs 90,000
Interest earned: Rs 33,323.39
Maturity amount: Rs 1,23,323.39
You can get the following benefits after using the Post Office Senior Citizen Scheme interest calculator:
Free to you
Calculate returns based on input values
Error-free and quick results
Easy to use online on the official website
Following listed are the features of investing in the post office senior citizen savings scheme:
Investors can invest in the scheme individually or jointly with their spouses. Even if only one spouse is a senior citizen, both account holders can still use this scheme. Their joint account balance must not exceed the limit of Rs. 15 Lacs.
If one individual wishes to invest in the system through multiple accounts, they can do so. The collective balance of all the funds must not exceed the limit of Rs. 15 Lacs.
While opening up, the account senior citizens can nominate anyone as their nominee for the investment scheme. The investor can avail of the nominee facility by filling up Form C while opening the account.
There is a 5-year lock-in period on the scheme. The investor can close the account at any time. However, a penalty for premature withdrawal is levied as mentioned below.
Before 1 year, no interest is paid to the investors
Between 1 to 2 years, deduction equals 1.5% from the principal amount
Between 2 to 5 years, deduction equals 1% from the principal amount
After the maturity period (5 years) of the account is over, the investor can get a three-year extension period. No deductions are made if the investor closes the account after one year of the extension period.
Investors can quickly transfer the account from one post office to another. It is a quick and easy process, which is available both offline and online.
Investors can claim tax rebates under the Income Tax Act, 1961, Section 80 C on the invested amount. However, tax benefits are subject to changes in the Indian taxation rules/ laws.
Post Office Senior Citizen Scheme interest calculator can help you plan your finances in an easy and accurate manner. Once you get the idea about the amount you may receive upon policy maturity, you can increase or decrease the amount per affordability. You can even plan future investments or financial goals by knowing plan details beforehand.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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