Senior Citizen Savings Scheme. The government has made some changes in the Senior Citizen Savings Scheme (SCSS), the highest interest earning scheme among small savings schemes.
This change will provide more convenience to senior citizens to invest in this scheme. The government is currently offering 8.2 percent interest in this scheme.
In such a situation, if you are planning to invest in this scheme, then before that definitely know about the changes in this scheme. All these changes have come into effect from November 9. Let us know about the changes in these schemes one by one.
More time to invest retirement benefits
Retired persons above 55 years of age but below 60 years will now get three months time to open SCSS account, which was earlier one month.
Retirement benefits means provident fund, retirement or death gratuity , leave encashment etc. received by a person after retirement.
Government employee’s spouse will invest
The government has further eased the rules for investing in SCSS for spouses of government employees who die while on duty. According to the new rules, now spouses of government employees can also invest in the scheme.
However, this investment will be allowed only if the deceased government employee has attained the age of 50 years and has died while in service.
Deduction on premature withdrawal
According to the new rules, if the account is closed before completion of one year of investment, one percent of the deposited amount will be deducted.
Earlier, if the account was closed before the expiry of one year, the interest paid on the amount deposited in the account was recovered from the amount deposited and the entire balance was paid to the account holder.
