Post offices offer a total of nine saving schemes that offer varying interest rates from 4 per cent to 8.3 per cent. Two of these nine post office saving schemes, namely, senior citizen saving scheme and 'Sukanya Samriddhi' scheme, offer interest rates of 8.3 per cent and 8.1 per cent respectively, stated India Post, on its website indiapost.gov.in. A senior citizen scheme saving scheme can be a good option for people above 60 years of age while the sukanya samriddhi scheme is meant for girl children. So you might consider investing money in sukanya samriddhi scheme for your daughters.
Given below is everything you want to know about post office senior citizen saving scheme and sukanya samriddhi scheme:
Post office senior citizen saving (SCSS) scheme
This account calls for only one deposit to be made subject to an upper limit of Rs 15 lakh, said India Post on its website. An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under voluntary retirement can also open this account subject to the condition that it is opened within one month of receipt of retirement benefits and the amount should not exceed the amount of retirement benefits.
A joint account can be opened with spouse only and first depositor in the joint account is the investor.
The maturity period of senior citizen saving scheme is five years. A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife). The account can be transferred from one post office to another. Any number of accounts can be opened in any post office subject to the maximum investment limit by adding balance in all accounts.
After maturity, the account can be extended for further three years within one year of the maturity by giving application in the prescribed format. In such cases, the account can be closed at any time after expiry of one year of extension without any deduction.
In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January.
Premature closure of the SCSS account is allowed after one year on deduction of an amount equal to 1.5 per cent of the deposit and after two years, on deduction of an amount equal to 1 per cent of the deposit.
Income Tax benefits
Investment under this scheme qualifies for benefit under Section 80C of the Income Tax Act, 1961 from 1.4.2007. Tax is deducted at source if the interest amount is more than Rs. 50,000 per annum (in case of senior citizen).
(Also Read: Saving Schemes With No Tax Benefits But Good Returns - RDs Vs MIS Vs KVPs Vs SIPs)
This scheme requires a minimum investment of 1,000 and a maximum of Rs 1,50,000 in a financial year. The subsequent deposit should be made in multiple of Rs 100. Deposits can be made in lump-sum amount. There is no limit on the number of deposits either in a month or in a financial year.
A legal guardian/natural guardian can open the account in the name of girl child.
A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different girl children.
The account can be opened up to age of 10 years only from the date of birth. For initial operations of scheme, one year grace has been given. With the grace, a girl child who is born between 2.12.2003 and 1.12.2004 can open account up to 1.12.2015.
If minimum Rs 1,000 is not deposited in a financial year, the account will be discontinued and can be revived with a penalty of Rs 50 per year with the minimum amount required for deposit for that year.
Partial withdrawal, maximum up to 50 per cent of balance standing at the end of the preceding financial year, can be taken after account holder's attaining age of 18 years.
The account can be closed after completion of 21 years.
Normal premature closure will be allowed after completion of 18 years, provided that girl is married.
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