The Senior Citizen Savings Scheme or SCSS is the most effective guaranteed income generator for anyone past 60 years in India. It carries a sovereign guarantee on safety of principal and interest and also entitles the account holder to income tax benefits according to Section 80C of the Income Tax Act 1961.
The SCSS was launched on August 2, 2004. It has attained such popularity that in the April-September period of 2023, this scheme registered outstanding deposits of Rs 1.62 lakh crore, revealed an SBI Ecowrap report. There are a few rules governing this scheme. One should know them before proceeding to invest.
Senior Citizen Savings Scheme interest rate
Senior Citizen Savings Scheme can be opened in all post offices, apart from PSU banks and selected private sector banks. The maximum investment that one can make is Rs 30 lakh. The minimum that one can put in is Rs 1,000 and then in multiples of Rs 1,000.
An interest rate of 8.2%, which is in the highest bracket, is paid. The interest is paid on March 31, June 30, September 30 and December 31. However, if the interest is not withdrawn, it will not earn additional interest.
Tenure
The template maturity period of this scheme is 5 years. But if the investor wants, he/she can stretch it for 3 more years by applying in writing.
Can I close the account prematurely
One can withdraw money partly/fully from the account and even close it. There is a particular form that has to be submitted. However, if one closes it within a year from investment, the interest paid will be deducted from the principal to be returned. If one closes it between 1 and 2 years, the penal amount will be 1.5%. The penalty comes down to 1% if the account is closed after 2 years.
What documents would I need
The application for opening an account is available at the website of indiapost. To open an account, any of the following documents can be used: passport, driving license, voter’s ID card, Job card issued by MGNREGA and signed by state govt office, letter issued by National Population Register with details of name and address of the applicants.
Senior Citizen Savings Scheme or SCSS provides financial security to anyone who is a senior citizen in this country. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
