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Senior Citizens Savings Scheme is a special scheme of the Government of India for senior citizens. This scheme is safe and also gives attractive returns. In this, a senior citizen can invest a maximum of Rs 30 lakh. Under this scheme, an account has to be opened in the post office or bank. Tax is also saved through this scheme. 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. Additionally, retired civilian employees above 55 years of age and below 60 years can also open an account, subject to the condition that they invest within 1 month of receiving retirement benefits. Also, retired defense personnel above 50 years of age and below 60 years of age can also open the 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 credited to the joint account will be for the first account holder only.
How much interest do you get?
According to the official website of India Post, 8.2 percent annual interest is available on Senior Citizen Savings Scheme account. Interest 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 from 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 excess amount will be returned to the depositor immediately and only the savings account interest rate will be applicable from the date of additional deposit to the date of withdrawal. Investments under this scheme are eligible for the benefits 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 in 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.