INSUBCONTINENT EXCLUSIVE:
Senior Citizens Savings Scheme offers compelling interest rates and tax benefits.
This Sunday isn't like any other! It's Father's Day and if you're thinking as to what to gift your
father, it should be something that helps him become further financially independent, even in his old age
Investment in Senior Citizens Savings Scheme (SCSS) is the perfect gift that one can give to the Father on the Father's Day
Senior citizen savings scheme is a government product that offers compelling interest rates, tax benefits and as the name suggests, is meant
only for senior citizens, or the people aged 60 years or above
The interest accrued on senior citizens savings scheme is paid on a quarterly basis.Everything you want to know about senior citizens
savings scheme (SCSS):Eligibility: An individual of the age of 60 years or more may open the senior citizen savings account
An individual of the age of 55 years or more but fewer than 60 years who has retired on superannuation or is under voluntary retirement can
also open the account subject to the condition that it is opened within one month of receipt of retirement benefits
The amount, however, should not exceed the amount of retirement benefits
A depositor may operate more than one account in individual capacity or jointly with spouse.Where to open SCSS account: Post offices across
Details HereMinimum amount for opening of SCSS account and maximum balance that can be retained: There shall be only one deposit in the
account in the multiple of Rs 1,000
The maximum balance cannot exceed Rs 15 lakh
The account can be opened by cash for an amount below Rs 1 lakh and for Rs 1 lakh and above, it can be opened by cheque only
In the case of cheque, the date of realisation of cheque in the account shall be the date of opening of account.Maturity period of senior
citizen savings scheme: Investment in senior citizen savings account requires a minimum lock-in period of five years.Interest rates on SCSS:
The current interest rate is 8.3 per cent per annum, according to India Post's website
The interest is payable from the date of deposit of 31st March/30th September/31st December in the first instance and thereafter, the
interest is payable on 31st March, 30th June, 30th September and 31st December
The interest rate on this scheme, like other small savings schemes, changes every quarter.: Saving Schemes With No Tax Benefits But Good
Returns: RDs Vs MIS Vs KVPs Vs SIPsIncome tax: The investment under this scheme qualifies for benefit under Section 80C of the Income Tax
Tax is deducted at source on interest if the interest amount is more than Rs 50,000 per annum (in case of senior citizen).: Fixed Deposits
Vs Recurring Deposits: Which Should Be Your Pick And WhyPremature closure of SCSS accounts: Premature closure of SCSS accounts 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 1 per cent of the deposit
However, SBI charges 1.5 per cent if you close it after two years, according to its website.Closure of SCSS accounts: After maturity, the
account can be extended for further three years within one year of the maturity by giving an 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.
