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Senior Citizen’s Savings Schemes
This scheme was introduced for senior citizens in the annual budget by the then Finance Minister in the year 2004.It was a new avenue of investment and return for Senior Citizen.Salient Features
- The account may be opened by an individual, Who has attained age of 60 years or above on the date of opening of the account.
- Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.
- No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.
- The account may be opened in individual capacity or jointly with spouse.
- Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.
- The individual may open one or more account in the multiple of INR.1000/-, subject to a maximum limit of INR.15 lakh. Further, more than one account cannot be opened in the same post office during a calendar month.
- No withdrawal shall be permitted before the expiry of a period of five years from the date of opening of the account. The depositor may extend the account for a further period of 3 years.
- Premature closure of account is permitted.
- After one year but before 2 years on deduction of 1 ½ % of the deposit.
- After 2 years but before date of maturity on deduction of 1% of the deposit.
- In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest.
- Interest @ 9% per annum from the date of deposit on quarterly basis. Interest can be automatically credited to savings account provided both the accounts stand in the same post office.
- Interest rounded off to the nearest multiple of rupee one.
- Post Maturity Interest at the rate applicable to the deposits under Post Office Savings Accounts from time to time is admissible for the period beyond maturity.
- Nomination facility is available in the Scheme.
- The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
- Monthly Income Scheme (MIS) and Senior Citizen Saving Scheme (SCSS) are the best for Senior Citizens who desire monthly/quarterly interest. Invest in MIS / SCSS and transfer interest into RD account through SB account through written request and earn a combined interest of 10.5 % (approx.).
- This is the safest investment option for the Senior Citizens.