Senior Citizen Saving Scheme
As is apparent, this scheme is for the exclusive benefit of Senior Citizens i.e. people aged 60 years or more or for Citizens who have retired under a voluntary or a special voluntary retirement scheme and have attained the age of 55 years. The scheme that came into being since August 2004 carries a return of 9% on all the deposits made under the scheme. The maturity period of the scheme is five years extendable by another three years.
Key Features of Senior Citizen Saving Scheme
The minimum investment is 1000 rupees and in multiples of Rs.1000 subject to a maximum of Rs.15 lakh. Premature withdrawal after a period of one year will be allowed, subject to some deductions. The investments in the scheme is non-tradable and non-transferable. However, nomination facility is available. Non-Resident Indians and Hindu Undivided Families are not eligible to invest in the scheme.
Advantages of Senior Citizen Saving Scheme
This Scheme is most beneficial to Senior citizens and provides a high rate of interest as compared to bank interest of 4.5- 4.75%. Although the interest on the deposit is taxable, the deposits themselves are tax free. As the post office is a department of the government of India, it is a safe investment. The principal amount is assured.
How to Start Post office Senior Citizens account
A Senior Citizen Account can be opened through any designated post office through out the country. The account can be opened by any individual 60 years of age and above either individually, or jointly (with spouse only).
Interest Payment on Senior Cizen Saving Scheme
Interest @ 9% 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.
Mode of payment of interest
The interest is payable on a Quarterly basis
From the date of deposit to 31st march
- 30th June
- 30th September
- 31st December
Pre Mature Encashment
Account can be closed after one year and before second year. The amount equal to 1.5% on the balance amount will be deducted and balance will be paid to depositor If the account is closed after 2 years from the date of opening of account, then the amount equal to 1% on the balance amount will be deducted and balance will be paid.
Safest Investment Option for Senior Citizens
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.).This is the safest investment option for the Senior Citizens.