If any excess amount is deposited in the account of this Scheme, the excess amount will be refunded to the depositor immediately and only savings account interest rates will be applicable from the date of excess deposit to the date of withdrawal.
Senior Citizen Savings 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 Rs 30 lakh in it. Under this scheme, an account has to be opened at a post office or a bank. This scheme also saves tax. This scheme has been specially designed keeping senior citizens in mind.
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 can also open an account, subject to the condition that they invest within 1 month of receiving retirement benefits. Also, retired defense employees above 50 years of age and below 60 years of age can also open an account, subject to the condition that they invest 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 Savings Scheme Account. The interest amount is payable from the date of deposit till 31st March / 30th September / 31st December and thereafter, on 1st April, 1st July, 1st October and 1st January.
Minimum amount will be Rs.1000
Investment in Senior Citizen Savings Scheme can be started with a minimum of Rs.1000 and in multiples of 1000, up to a maximum of Rs.30 lakh. If any additional amount is deposited in the SCSS account, the additional amount will be refunded to the depositor immediately and only savings account interest rate will be applicable from the date of additional deposit till 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
The account holder can also extend the account for a 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. Remember, the extended account will earn interest at the rate applicable on the maturity date.
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