Post Office Senior Citizen Savings Scheme: Eligibility, Interest Rates


Here are key things to know about post office Senior Citizen Savings Scheme:

Amount
The minimum amount required to open the SCSS account is Rs.s- 1000/- and the maximum amount should not exceed Rss. 15 lakh. The account can be opened by cash if the amount is below Rss. 1 lakh. However, if the amount is Rss. 1 lakh or more, one needs to deposit a cheque.
Interest rates
The scheme offers an interest rate of 8.6 per cent per annumI(As of 09th Sep-2019), according to India post.
Income tax benefit
Investments under the scheme also qualify for the income tax benefit under Section 80C of the Income Tax Act. TDS is deducted at source on interest if the interest amount is more than Rss. 10,000/- per annum.
Maturity
The maturity period of senior citizen savings scheme is five years. However, after maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction, according to India Post.
Premature closure
Under the post office's saving scheme, premature closure is allowed after one year on deduction of an amount equal to 1.5 per cent of the deposit. After 2 years, 1 per cent of the deposit is deducted.

Comments

Post a Comment