Senior Citizens Saving Scheme (SCSS) is a saving scheme that can be started in any banks or even through post offices. The present condition have adversely affected the economic conditions all around the world. Thus, the interest rate have been reduced to support the country’s economy by RBI.This have affected the senior citizens as well. Before the interest rate was from 6.5 – 7.5%, but now the interest rate is reduced to 6 – 6.5%.
Senior citizens usually prefer a save risk free income. So their money is usually deposited in banks and post offices. Now since the bank interest rates is falling down. They can prefer SCSS which involves low risk and is also guaranteed by central government. The interest rate of this scheme is also high compared to Fixed deposit’s interest rates.
Terms and conditions of SCSS:1) Age: Persons above age 60 Joint account can be open the spouse only.Exceptions:a)Persons who have taken voluntary retirement can also open SCSS even if the age is not above 60 years within one month of retirement.
b) The condition of age 60 years is not applicable for retired defense person.2) Nominee: Any person can be kept as nominee.3) Amount: Minimum Investment Amount – ₹1000
Maximum Amount- ₹15 lakhs The investment can be made only one time.
4) Interest Rate: The present interest rate is 7.4% for this quarter( April to June).5) Maturity period: 5 years is the maturity period of this scheme. After the expiry of maturity period is given an application it can be extended for 3 more years. It can be withdrawn before the maturity by paying some penalty based on the year of withdrawal.
6) Tax benefits: up to ₹1.5lakh can be claimed as tax benefit based on the amount of investment.This scheme is still not very known to people. It can be easily open in any nationalized banks and post office.For further details watch the video.