 "Savings schemes for senior citizens: Check interest, benefits, more")
Senior Citizen Savings Scheme (SCSS) is a preferred fixed-income investment option available for people above the age of sixty years. This scheme aims to help senior citizens to ensure regular flow post-retirement. The SCSS is a government-backed scheme that gives guaranteed returns every quarter. The scheme can be availed through any certified bank and post office in India. This is a very effective saving option for the long term, which offers attractive features and unmatched security.
What are the benefits of the Senior Citizen Savings Scheme?
Here are some of the key features of Senior Citizen Savings Scheme (SCSS):
The SCSS is backed by the Indian government hence it is considered safe and secure.
SCSS accounts include a simple process, and one can open an SCSS account in any authorised bank.
The SCSS account comes with tax benefits.
SCSS accounts are transferable across the country.
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The five-year tenure can be extended to another three years.
These accounts offer high interest rates to senior citizens.
Such account holders also get tax benefits of up to Rs 1.5 lakh under section 80C of the Income Tax Act, 1961.
What are the eligibility requirements to open an SCSS account?
Here's the eligibility to open an SCSS account:
Any individual must be at the age of 60 years or above.
A person who has crossed 55 years of age but is still below the age of 60 and has retired on superannuation is eligible to open an SCSS account.
Individuals who have attained the age of 55 years and have retired before the implementation of the SCSS rules are eligible for the SCSS scheme.
Non-resident Indians (NRI) are not eligible to open SCSS accounts.
Hindu Undivided Families (HUF) are also not eligible to open the SCSS account.
What is the interest rate of the SCSS account?
The interest rate of the SCSS account is 8.20 p.a., and the return of this account is high as compared to a savings account and fixed deposit (FD) account. The minimum amount one can invest in an SCSS account is Rs 1000 while the maximum amount is Rs 15 lakh or the amount received on retirement, whichever is lower.
What is the SCSS maturity period?
The maturity period for SCSS is 5 years which is calculated from the date of account opening. However, the account holder also has the option to extend the duration to three more years.
How to open an SCSS account?
One can open an SCSS account either at an authorised bank branch or a post office branch. If the bank allows, you can open an SCSS account through the bank's internet portal or mobile banking. You can also open the SCSS account online with the post office.
You can also download the SCSS application from the website of India Post. You are required to fill out the form and submit it to the authorised post office along with the required documents and pay the deposits to open the account.