Senior Citizen Savings Scheme is a special scheme of the Government of India for senior citizens. This scheme is safe and also gives attractive returns. A senior citizen can invest a maximum amount of Rs 30 lakh in it.
Under this scheme, an account has to be opened at a post office or a bank. This scheme also saves tax. This scheme has been specially designed keeping senior citizens in mind.
Who can open an account
Any Indian above the age of 60 years can open an account under this scheme. Also, retired civilian employees above the age of 55 years and below the age of 60 years can also open an account, subject to the condition that they invest within 1 month of receiving retirement benefits. Also, retired defense personnel above the age of 50 years and below the age of 60 years can also open an account, subject to the condition that they invest within 1 month of receiving retirement benefits. The account can be opened in individual capacity or jointly with spouse only. The entire amount deposited in the joint account will be for the first account holder only.
How much interest do you get
According to the official website of India Post, Senior Citizen Savings Scheme account offers 8.2 per cent annual interest. The interest amount is payable from the date of deposit till 31 March / 30 September / 31 December and thereafter, on 1 April, 1 July, 1 October and 1 January.
The minimum starting amount will be Rs 1000
One can start investing in Senior Citizen Savings Scheme with a minimum of Rs 1000 and in multiples of 1000, up to a maximum of Rs 30 lakh. If any excess amount is deposited in the SCSS account, the excess amount will be refunded to the depositor immediately and only savings account interest rates will be applicable from the date of excess deposit to the date of withdrawal. Investment under this scheme is eligible for the benefit of section 80C of the Income Tax Act, 1961.
You can extend the account
The account holder can also extend the account for a period of 3 years from the maturity date by submitting the prescribed form along with the passbook to the concerned post office or bank. The account can be extended within 1 year of maturity. Note that the extended account will earn interest at the rate applicable on the maturity date.
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