India Post, the postal system of the country offers various saving schemes with different rates of interest. Senior Citizen Savings Scheme (SCSS), one such scheme offered by India Post, works as an investment avenue and helps in generating wealth for a successful retirement life. SCSS earns an interest rate of 8.7 percent per annum, which is payable from the date of deposit on March 31/ September 30/December 31 in the first place and thereafter, interest is payable on March 31, June 30, September 30 and December 31, noted India Post on its official website- indiapost.gov.in.
Here are 10 things to know about Post office Senior Citizen Savings Scheme (SCSS):
- Post office senior citizen savings account (SCSS) can be opened by an individual of 60 years or above. An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS (Voluntary Retirement Scheme) 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 number of retirement advantages, said India Post.
- There can be only single deposit in the account in multiple of Rs. 1,000 where the maximum amount must not exceed Rs. 15 lakh, said India Post.
- The maturity period of senior citizen savings account is 5 years.
- Under this scheme, premature closure is permitted after one year on deduction of an amount equal to 1.5 percent of the deposit and after 2 years on deduction of an amount equal to 1 percent of the deposit.
- After maturity, the account can be extended for further three years within one year of the maturity by giving the application in prescribed format. In such cases, the account can be closed at any time after the expiry of one year of extension without any deduction.
- Tax Deducted At Source (TDS) is deducted at source on interest if the interest amount is higher than Rs. 10,000 per annum. Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from April 1, 2007.
- Nomination facility is available at the time of opening and also after the opening of an account.
- The account can be transferred from one post office to another.
- Any number of accounts can be opened in any post office subject to highest investment limit by adding balance in all accounts, mentioned India Post.
- The joint account can be opened with spouse only and the first depositor in the joint account should be the investor.