Savings Scheme: The Senior Citizen Savings Scheme (SCSS) is a government savings scheme specifically designed for senior citizens. Currently, this scheme offers an annual interest rate of 8.2%. This scheme not only protects your money but also provides a source of regular monthly income. Interest will be credited to your account every three months, which you can use directly.
To open an SCSS account, you must visit any nearby post office branch and fill out an application form. Alternatively, you can apply by downloading the form from the government’s official website. The form must include your personal information, passport-size photo, and required documents. You can use cash or a check for a deposit when submitting your application.
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Special Features of the SCSS Account
You can start with a minimum deposit of ₹1,000, and this amount must be in multiples of ₹1,000. A person can deposit a maximum of ₹30 lakh across all their accounts under SCSS. Husband and wife can open separate single accounts or joint accounts.
Interest and Maturity
SCSS offers an interest rate of 8.2% per annum, which is credited to the account every three months. If you wish to have it auto-credited to your savings account, that is also possible. The scheme has a maturity period of 5 years. For example, if the maximum ₹30 lakh is deposited, the interest will be ₹61,500 in three months, or ₹20,500 monthly. The total interest over five years amounts to ₹12,30,000, and the total amount at maturity can reach ₹42,30,000.
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Account Extension and TDS Rules
You can extend your SCSS account as many times as you wish, for a period of 3 years each time. If the interest earned from all your accounts, including SCSS, exceeds the prescribed limit in a financial year, TDS will be deducted. However, TDS will not be deducted if Form 15G or 15H is submitted.
Account Closing Rules
If the account holder closes the account within 1 year, interest will not be accrued. If the account is closed between 1-2 years, 1.5% of the total deposit amount will be deducted. If the account is closed after 2 years, 1% will be deducted. If the account is closed within 1 year after the extension, 1% will also be deducted. The remaining amount will be returned to the account.