Post Office Small Saving Scheme: People who are above the age of 60, here’s a wonderful saving scheme for you in Post Office which gives high returns with low risk. Moreover, you can earn good interest rate and income tax benefits. Known as Senior Citizen Savings Scheme (SCSS), you can open this scheme in Post Office or in some banks as well. As per the requirement, the subscriber must be 60 years old or above on the date of opening an SCSS account. However, age relaxation can be given to certain categories of individuals. With the SCSS account, the senior citizens can receive quarterly interest on deposits up to Rs 15 lakh.
Senior Citizen Savings Scheme: Account opening guidelines
A senior citizen can open an SCSS account in his/her individual capacity or jointly with the spouse in the post office or bank. Both spouses can open a single SCSS account also. They are allowed to nominate one or more than one person. The name of the nominee can be cancelled or changed by the depositor
Senior Citizen Savings Scheme: Interest rate
At present, the SCSS interest rate is 7.4%. However, the Centre revises the SCSS interest rate, along with other savings schemes, on a quarterly basis. As per the recent notification, the SCSS Interest Rate 2022 (for the first quarter of the New Year 2022) has remained unchanged.
Senior Citizen Savings Scheme: Income tax benefit
The investment made in the SCSS account qualify for deduction under Section 80C of the Income Tax. As per the updates from the official Post Office website, the interest is taxable if the total interest in all SCSS accounts is more than Rs 50,000 in a financial year.
Senior Citizen Savings Scheme: Maturity period
The depositors must note that the amount deposited in the SCSS account earns interest for a term of five years. The depositor can apply for a one-time extension of three years within one year of the maturity of the account.
Senior Citizen Savings Scheme: Deposit limit
The senior citizens can invest a maximum of Rs 15 lakh in an SCSS account. The minimum amount required to open the SCSS account is Rs 1000.
Senior Citizen Savings Scheme: Withdrawal guidelines
The depositors must note that multiple withdrawals from an SCSS account is not allowed. Even as the interest on SCSS investment is payable on a quarterly basis, the principal amount (deposit made at the time of opening of the account) is paid on or after the expiry of five years.( india. Com)
