Which is the Best Post Office Scheme for Senior Citizens?
Post Office Schemes for Senior Citizens, those aged 60 years and above, can invest in the Senior Citizens Savings Scheme (SCSS) to earn regular interest income.
Interest earned on deposits under this plan is payable quarterly.
The deposit matures after Five years from the date of account opening but can be extended once by an extra 3 years.
As of now, the maximum that can be invested in this plan by any individual has been capped at Rs 15 lakh.
SCSS is available through India Post Offices/Banks.
The terms and conditions applicable to the schemes are the same, regardless of the bank/ post office, you invest through.
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Features of Post Office Scheme for Sr. Citizens
| Eligibility | An individual above 60 years of age. Retired Civilian Employees above 55 years of age and below 60 years of age, subject to the condition that investment is made within 1 month of receipt of retirement benefits. Retired Defense Employees above 50 years of age and below 60 years of age, subject to the condition that investment is made within 1 month of receipt of retirement benefits. |
| Deposit | The account can be prematurely closed any time after the date of opening. If the account is closed before 1 year, no interest will be payable, and if any interest paid in the account shall be recovered from principal. If the account closed after 1 year but before 2 years from the date of opening, an amount equal to 1.5 % will be deducted from the principal amount. If the account closed after 2 years but before 5 years from the date of opening, an amount equal to 1% will be deducted from the principal amount. |
| Premature Closure | The account can be prematurely closed any time after the date of opening. If the account is closed before 1 year, no interest will be payable, and if any interest paid in the account shall be recovered from the principal. If the account closed after 1 year but before 2 years from the date of opening, an amount equal to 1.5 % will be deducted from the principal amount. If the account closed after 2 years but before 5 years from the date of opening, an amount equal to 1% will be deducted from the principal amount. |
Account Closure on Maturity
- Account may be closed after 5 year from the date of opening by submitting the prescribed application
form with a passbook at the concerned Post Office. - In case of the death of the account holder, from the date of death, the account shall earn interest
at the rate of a PO Savings Account. - In case the spouse is a joint holder or a sole nominee, the account can be continued till maturity
if the spouse is eligible to open an SCSS account and not have another SCSS Account.
Also Read IPPB Net-Banking Registration | Features | Virtual Debit Card
Extension of Account
- The account holder may extend the account for a further period of 3 years from the date of maturity by submitting the prescribed form with a passbook at the concerned post office.
- The account can be extended within 1 year of maturity.
- Extended account shall earn interest at the rate applicable on the date of maturity.
Also Read Savings Account Registration | Online | Interest Rate | Features
Interest Rates
- 8.2 % per annum.
- Interest shall be payable every quarter and applicable from the date of deposit to 31st March/30th June/30th September/31st December.
- If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.
- Interest can be drawn through auto credit into a savings account standing at the same post office, or ECS.
- In the case of the SCSS account at CBS Post offices, monthly interest can be credited into a savings account standing at any CBS Post Office.
- Interest is taxable if total interest in all SCSS accounts exceeds Rs.50,000/- in a financial year and TDS at the prescribed rate shall be deducted from the total interest paid. No TDS will be deducted if form 15 G/15H is submitted and accrued interest is not above the prescribed limit.
Source – Post-office