These Two Post Office Savings Schemes Offer Up to 8.3% Interest Rate
Senior Citizen Saving Scheme is for people above the age of 60 years. Sukanya Samriddhi Scheme offers an interest rate of 8.1% per annum. Sukanya Samriddhi requires a minimum deposit of Rs. 250 per year.
If you are planning to make an investment for your daughter or parents, post office schemes can be a good option. Post offices offer a host of saving schemes with different rates of interest. Two of the various savings schemes, post office offers is 'Sukanya Samriddhi' and Senior Citizen Saving Scheme. A Senior Citizen Saving Scheme is for people above the age of 60 years while the Sukanya samriddhi scheme is meant for girl child. Recently, the government slashed the minimum amount of annual deposit in Sukanya Samriddhi accounts to Rs. 250 from Rs. 1,000.
Post office Senior Citizen Saving Scheme (SCSS) and Sukanya Samriddhi scheme in detail:
Post office Sukanya Samriddhi scheme in detail:
Rate of Interest
Sukanya Samriddhi Scheme offers an interest rate of 8.1 per cent per annum. The investment is calculated and compounded on an annual basis.
Features
This scheme requires a minimum investment of Rs 250 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.
Tenure
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 December 2, 2003 and December 1, 2004 can open account up to December 1, 2015.
If minimum amount of Rs. 250 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
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.
Post office Senior Citizen Saving Scheme (SCSS) in detail:
Rate of Interest
Senior Citizen Saving Scheme (SCSS) offers a return of 8.3 per cent per annum. In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. There shall be only one deposit in the account in multiple of Rs 1,000 and the maximum amount not exceeding Rs 15 lakh, according to indiapost.gov.in.
Features
An individual of the age of 60 years or more is eligible to open this account.
An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.
A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).
Maturity period
The maturity period of senior citizen saving scheme is five years. 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.
Premature closure
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 April 1, 2007. Tax is deducted at source if the interest amount is more than Rs. 50,000 per annum.