New Delhi. Many banks, post offices and various companies in the country run several schemes for senior citizens. One of these schemes runs Punjab National Bank (PNB), India’s second largest government bank. If you do not know about PNB scheme, then you will get full information about it here. The Bank’s Senior Citizen Savings Scheme (SCSS), which was launched by the Government of India in 2004, guarantees retirement income. This deposit scheme is a safe and secure investment option, in which you will get regular income if you are a senior citizen. Let us know in detail about this scheme.
How old should be
First of all it is important to be an Indian citizen. Apart from this, you must be 60 years old. For those who have retired under superannuation or voluntary or special voluntary scheme (VRS), the minimum age limit is 55 years. Retired personnel of Defense Services (excluding Civil Defense employees) will be eligible to invest in the scheme at the age of 50 years. However there will be some conditions for them.
How much will be the investment
The minimum investment in SCSS should be Rs 1000 whereas you can invest up to Rs 15 lakh maximum. You can invest in multiplication of Rs 1,000. As far as returns are concerned, you will get interest as per the guidelines of the Government of India, which also changes from time to time. The duration of this plan is 5 years, which can be extended for 3 more years. If you want, you can open this account for yourself alone or jointly with your spouse.
How to open account
You open a bank savings account in PNB with a SCSS account. You have to fill the necessary form to open an account, which you will find in the bank branch. Apart from this, two passport size photographs, address and ID proof will also be required. At the time of opening the account, you will also have to submit a copy of the Aadhaar card. Well one good thing is that SCSS is liquid despite the prescribed lock-in period of 5 years. That is, you can withdraw money ahead of time. But there are some rules and fees for this as well.
Tax imposed or not
The entire interest received on the amount deposited in SCSS will be taxed. Also, TDS is deducted as per applicable income tax rules. However, if your income is not taxable, then you have to give Form 15H or 15G so that TDS is not deducted.
These are the benefits of SCSS
This scheme has several advantages. First of all, availability. You can open an account by filling a form in your bank branch. Secondly, this is an Indian government investment plan. So there is no risk at all. You can open more than one SCSS account either alone or with someone. Good interest accrues on this plan. It had an interest rate of 7.4 per cent for the April-June quarter.
