India Post or Department of Posts, which runs the postal network of the country, offers a number of saving schemes with different interest rates. Senior Citizen Savings Scheme (SCSS) is one among the nine small savings schemes offered by post office. The scheme offers an interest rate of 8.7 per cent per annum, payable from the date of deposit of March 31/ September 30 / December 31 in the first instance and thereafter, interest shall be payable on March 31, June 30, September 30 and December 31, said India Post on its official website- indiapost.gov.in.
Here are 10 things to know about Post office Senior Citizen Savings Scheme (SCSS):
1. Eligibility: 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 certain conditions, said India Post.
2. Amount: There can be only one deposit in the account in multiple of Rs 1,000 where the maximum amount should not exceed Rs 15 lakh.
3. Maturity: The maturity period of Senior Citizen Savings Scheme is five years.
4. Premature closure: Under the scheme, premature closure is allowed after one year on deduction of an amount equal to 1.5 per cent of the deposit and after 2 years, 1 per cent of the deposit is deducted.
5. Income tax benefit: Investment under this scheme also qualifies for the benefit of Section 80C of the Income Tax Act. TDS is deducted at source on interest if the interest amount is more than Rs 10,000 per annum.
6. Extension: After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction, said India Post.
7. Nomination facility: Under post office SCSS, nomination facility is available at the time of opening and also after opening of account.
8. Account transfer: The account can also be transferred from one post office to another.
9. Number of accounts: Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
10. Joint account: A depositor may operate more than one account in individual capacity or jointly with spouse. However, joint account can be opened only with spouse and first depositor in joint account should be the investor.