SCSS - PAYMENT OF INTEREST
The interest shall be payable on quarterly basis at the rate notified from time to time. In the first instance, the interest shall be payable from the date of opening of the account to 31st March, 30th June, 30th September, 31st December, as the case may be, for the number of days left in the quarter on 1st working day of the subsequent quarter. Thereafter, interest shall be payable on the first working day of April/July/October/January, as the case may be, except in the quarter in which account is maturing. In the quarter in which the deposit is maturing, the interest shall be payable till the date of maturity of the account. Mode of interest payment and procedure for payment of interest in respect of MIS Scheme shall apply to SCSS also.
The interest for any period less than a quarter (as specified under the Scheme) shall be calculated as per the following formula: -
Number of days in the period x Interest for the quarter
Total number of days in the quarter
If the depositor opted, interest payable on the due dates shall be credited to the depositor's savings account standing in any CBS post office interest payable on due dates.
The Savings account may be single or joint (Type A or B) account subject to the condition that both the accounts are opened with the same CIF.
The depositor can receive his/her quarterly interest in the Bank Savings Account also by submitting the ECS mandate along with the copy of the cancelled cheque leaf or the first page of bank account passbook. Mode of interest payment and procedure for payment of interest in respect of MIS Scheme shall apply to SCSS also.
If the interest is not claimed by the depositor, such interest shall not earn any additional interest.
The interest shall be rounded off to the nearest multiple of rupee one and for this purpose any amount of 50 paisa or more shall be treated as rupee one and any amount less than 50 paisa shall be ignored.
The amount paid excess due to rounding off to the next rupee shall be adjusted during next interest payment.
As per SB Order No. 4/2022, linking of SCSS accounts to POSB account has been made mandatory.
(i) In case, the account is closed before one year after the date of opening account, interest paid on the deposit in the account shall be recovered from the deposit and the balance shall be paid to the account holder.
(ii In case of pre-mature closure, interest on deposit shall be payable up to the date preceding the date of pre-mature closure after deduction of penalty as specified in the Rules. (Please select "Premature Closure" option in the menu for more details.
(iii) In case of death of the depositor before maturity, the account shall be closed, and deposit shall be refunded along with interest at the rate of interest applicable to SCSS till date of death and at the rate of Post Office Savings Account interest till the date of final closure of the account.
Click here for SB Order No. 4/2022
As per FS division letter No. FS-10/1/2022-FS-DOP dated 26.4.2024, TDS in respect of quarterly interest of SCSS accounts should not be deducted without giving time to the investors for filing Form 15G/15H. Complaints have been received from the investors that TDS was recovered from their SCSS accounts on 1.4.2024 itself before filing Form 15G/15H. In all such cases, the investors should be allowed to file the above forms and if they are found eligible for exemption of TDS, refund should be granted by the Post offices. For this purpose, provision is made in Finacle upto 30.4.2024.
Click here to read FS division letter No. FS-10/1/2022-FS-DOP dated 26.4.2024
