SENIOR CITIZEN SAVINGS SCHEME
In Post Office Senior Citizen Savings Scheme, now the maximum limit for investment has been enhanced from Rs.15 lakhs to Rs.30 lakhs. The Interest rate as on 1.10.2023 is 8.2% payable every quarter on 1st April, 1st July, 1st October and 1st January. Maturity period is 5 years.
- SCSS account can now be opened through POSB net banking by senior citizens of age 60 and above.
- A person who has attained the age of 50 years and retired on superannuation or on voluntary basis can also open an account within three months from the date of receipt of retirement benefits.
- The spouse of a deceased employee who had completed 50 years of age at the time of death can also open an account.
- If the spouse is a joint holder of the account or the sole nominee in the account, he/she can continue the account till maturity date if meets the eligibility conditions including limit of investment prescribed.
- Retirement benefits include Retirement gratuity, Cash equivalent of leave, Provident Fund, commuted value of pension, savings element of Group Insurance, ex-gratia payment, EPF benefits under Employees Family Pension scheme.
- Employees means both Central and State Govt employees. Defence service personnel (excluding Civilian employees) can open the a/c on attaining the age of 50 years.
- Investment is eligible for tax exemption under 80C. However, interest upto Rs.50000-/ only is eligible for exemption under Sec.80TTB and TDS is deductible. If Form 15G/15H is submitted, TDS deduction will not be done. If the interest income from SCSS and MSSC put together exceeds Rs.50000 for senior citizens (Rs.40000/ for others), TDS is deductible. Interest can be credited to Post office Savings account or a bank account.
- Account can be extended beyond maturity period for a block period of 3 years each. Extension should be applied for within one year from the date of maturity or date of maturity of extended period. Interest rate prevailing on the date of maturity or on the date of maturity of extended period will be applied for each extension.
- If the a/c is closed within one year from the date of opening, interest already paid will be recovered. If it is closed after 1 year but before 2 years, 1.5% of the Principal amount will be recovered. If closed after 2 years but before 5 years, 1% of the Principal amount will be recovered. If the a/c is closed within 1 year from the date of extended period, 1% of the principal amount will be recovered.
Addendum:
- With effect from 2708/2024, SCSS accounts can be closed or Extended online through POSB Net Banking web site.
