Here's all you need to know to invest in the Senior Citizen Savings Scheme, which is one of the nine small savings schemes offered at designated post offices in the country:
Interest RateFor the third quarter of current financial year,
investment in the Senior Citizen Savings Scheme (SCSS) fetches interest at the rate of 8.6 per cent. The quarterly interest is paid on the first working day of April, July, October and January.
Minimum Investment For Opening Account
For opening an account under the Senior Citizen Savings Scheme, one needs to invest a minimum of Rs 1,000, according to the India Post website - indiapost.gov.in. The account can be set up with a single payment of any higher amount in the multiple of Rs 1,000.
Maximum Investment AllowedThe government currently allows a maximum investment of Rs 15 lakh in the Senior Citizen Savings Scheme.
Age Requirement
A Senior Citizen Savings Scheme account can be set up in favour of an individual of 60 years of age and above.The account can also be set up in favour of persons between 55 and 60 years of age under certain conditions. In such cases, the individual retiring on superannuation or under a voluntary retirement scheme (VRS) is required to open the account within one month of receipt of retirement benefits. Also, the amount of investment should not exceed the amount of retirement benefits, according to the India Post website.
Premature Closure
Although the investment in Senior Citizen Savings Scheme matures in five years, an option to close the account prematurely is available. The premature closure is allowed after one year against deduction of 1.5 per cent of the deposit, and 1 per cent after two years.
Tax ImplicationsA TDS or tax deducted at source is applicable in case the interest amount exceeds Rs 10,000 in a year.
Tags
News