Senior Citizen Savings Scheme (SCSS) Account

Senior Citizen Savings Scheme (SCSS) Account

 

Ø A new avenue of investment and return for Senior Citizen.

Ø The account may be opened by an individual,

Ø Who has attained age of 60 years or above on the date of opening of the account.

Ø Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.

Ø No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.

Ø The account may be opened in individual capacity or jointly with spouse.

Ø Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.

Ø The individual may open one or more account in the multiple of INR.1000/-, subject to a maximum limit of INR.15 lakh.

Ø No withdrawal shall be permitted before the expiry of a period of five years from the date of opening of the account. The depositor may extend the account for a further period of 3 years.

Ø Premature closure of account is permitted

Ø After one year but before 2 years on deduction of 1 ½ % of the deposit.

Ø After 2 years but before date of maturity on deduction of 1% of the deposit.

Ø Premature closure allowed after three years.

Ø In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest.

Ø Interest @ 9.20% per annum from the date of deposit on quarterly basis. Interest can be automatically credited to savings account provided both the accounts stand in the same post office.

Ø Interest rounded off to the nearest multiple of rupee one.

Ø Post Maturity Interest at the rate applicable to the deposits under Post Office Savings Accounts from time to time is admissible for the period beyond maturity.

Ø Nomination facility is available in the Scheme.

Ø The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Ø Monthly Income Scheme (MIS) and Senior Citizen Saving Scheme (SCSS) are the best for Senior Citizens who desire monthly/quarterly interest. Invest in MIS / SCSS and transfer interest into RD account through SB account through written request and earn a combined interest of 10.5 % (approx.).

Ø This is the safest investment option for the Senior Citizens.

 

Ø From 1.4.2013, interest rates are as follows:-

9.20% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.

o   An individual of the Age of 60 years or more may open the account.

o   An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.

o   Maturity period is 5 years.

o   A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife). 

o   Account can be opened by cash for the amount below INR 1 lakh and for INR 1 Lakh and above by cheque only.

o   In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account.

o   Nomination facility is available at the time of opening and also after opening of account.

o   Account can be transferred from one post office to another

o   Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.

o   Joint account can be opened with spouse only and first depositor in Joint account is the investor.

o   Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or Money Order.

o   Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest (Discount means deduction from the deposit.).

o   After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction.

o   TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a. 

Ø Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.