If any additional amount is deposited in the account of this scheme, the additional amount will be refunded to the depositor immediately and only the savings account interest rate will be applicable from the date of additional deposit to the date of withdrawal.
Senior Citizen Saving Scheme is a special scheme of the Government of India for senior citizens. This scheme is safe and also gives attractive returns. A senior citizen can invest a maximum amount of up to Rs 30 lakh in it. Under this scheme, an account has to be opened at a post office or bank. This scheme also saves tax. This scheme has been specially designed keeping in mind senior citizens.
Who can open an account
Any Indian above 60 years of age can open an account under this scheme. Apart from this, retired civilian employees above 55 years of age and below 60 years of age, subject to the condition that they invest within 1 month of receiving retirement benefits, can also open an account. Also, retired defense personnel above 50 years and below 60 years of age can also open an account, subject to the condition that the investment is made within 1 month of receiving retirement benefits. The account can be opened in individual capacity or jointly with spouse only. The entire amount deposited in the joint account will be for the first account holder only.
How much interest is available
According to the official website of India Post, 8.2 percent annual interest is available on Senior Citizen Saving Scheme account. The interest amount is payable from the date of deposit till 31 March / 30 September / 31 December and thereafter, on 1 April, 1 July, 1 October and 1 January.
Minimum starting amount will be Rs 1000
Investment can be started in Senior Citizen Saving Scheme with a minimum of Rs 1000 and in multiples of 1000, up to a maximum of Rs 30 lakh. If any excess amount is deposited in the SCSS account, the excess amount will be refunded to the depositor immediately and only the savings account interest rate will be applicable from the date of excess deposit to the date of withdrawal. Investment under this scheme is eligible for the benefit of Section 80C of the Income Tax Act, 1961.
Account can be extended
Account holders can also extend the account for a further period of 3 years from the maturity date by submitting the prescribed form along with the passbook to the concerned post office or bank. The account can be extended within 1 year of maturity. Note that the extended account will get interest at the rate applicable on the maturity date.
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