In case you are a senior citizen (above 60 years) and needs a daily stream of earnings and tax saving advantages, the Senior Residents Financial savings Scheme (SCSS) is the scheme you need to think about. It’s a government-backed retirement advantages program, during which senior residents can make investments a lump sum quantity and get common earnings throughout the retirement life. Right here’re particulars concerning the scheme:
What Is Senior Residents Financial savings Scheme?
It’s a authorities retirement saving scheme that helps senior residents obtain quarterly curiosity funds together with tax advantages. It has a 5-year maturity interval that may be prolonged as much as a further 8-year interval. It is one of many small financial savings schemes.
Returns On The Scheme
The Senior Residents Financial savings Scheme is likely one of the highest interest-paying small financial savings schemes. The federal government just lately stored rates of interest unchanged on small financial savings schemes. The rate of interest on SCSS stands at 7.4 per cent. This rate of interest additionally beats the present stage of inflation, which stands at 7.04 per cent, and is increased than the rates of interest provided by numerous banks on mounted deposits.
As an illustration, Punjab Nationwide Financial institution (PNB) provides rates of interest within the vary of three.50-5.75 per cent to senior residents, relying upon the period of deposits. IDFC First Financial institution provides FD rates of interest to senior residents within the vary of 4.00-6.50 per cent. India’s largest non-public sector lender HDFC Financial institution provides 3.00-6.50 per cent rates of interest. These rates of interest are for deposits beneath Rs 2 crore.
Who Can Open SCSS Account: Options, Eligibility
A person who has attained the age of 60 years and above can open this account. It may be opened at any financial institution or publish workplace singly or collectively with the partner. An individual who has attained the age of 55 years or extra however lower than 60 years and who has retired on superannuation or in any other case on the date of opening an account may also open this account. The retired personnel of Protection Companies attaining the age of fifty years. NRIs and Hindu Undivided Household (HUF) aren’t eligible to open this account.
The Senior Residents Financial savings Scheme account might be opened with a minimal deposit of Rs 1,000 or any sum in a number of of Rs 1,000 not exceeding Rs 15 lakh. It has a 5-year maturity interval that may be prolonged for 3 extra years. The entire quantity of deposit in a joint account shall be attributable to the primary account holder solely.
Each the spouses can open single account and joint accounts with one another. The depositor might nominate an individual or multiple particular person. Nomination made by the depositor may be canceled or diverse.
The deposit made on the time of opening of the account shall be paid on or after the expiry of 5 years or after the expiry of eight years the place the account was prolonged from the date of the opening of the account. A number of withdrawals from an account shall not be permitted.
If the curiosity payable each quarter will not be claimed by an account holder, such curiosity shall not earn further curiosity.