Senior Citizen Savings Scheme
Senior Citizen Savings Scheme is an investment instrument directed towards Senior Citizens.
Eligibility is 60 years of age or above, on the date of opening the account. Proof of age and a photograph of account holder are required. The age limit is reduced to 55 years in case of an individual retiring on superannuation or otherwise, or under VRS or special VRS, provided the account is opened within one month of date of receipt of retirement benefits. The retired personnel of Defence Services, excluding Civilian Defence Employees, shall be eligible irrespective of age limit.
Main Features and Rules –
- The interest rate is 9% p.a. payable quarterly. Annualized equivalent is 9.31% p.a. assuming the interest component is re-invested. The benefit of section 80C is available on investment but interest is fully taxable.
- The term for the scheme is 5 years. A onetime extension of three years is allowed, if applied within one year of its maturity.
- NRIs, PIOs and HUF are not eligible to invest in this scheme.
- Maximum limit is Rs.15,00,000/-(Rupees fifteen Lac only), however in case of retirees before the age of 60 years the limit is restricted to retirement benefits or Rs15 Lac whichever is less.
- Any Post Office in India doing savings bank work, or an office or banking company or institution authorized by Central Government can operate this scheme. An investor can open more than one account subject to the condition, that amount in all accounts taken together does not at any point of time exceed Rs.15 Lac. At the same accounts office, two or more accounts cannot be opened during one month. Some offices insist on a gap of 30 days.
- The investment is non transferable and non tradable.
- Premature closure is allowed after expiry of one year subject to following conditions – After expiry of one year but before 2 years, 1.50 % of deposit shall be deducted. After expiry of 2 years, 1% of the deposit shall be deducted. No deduction is made in case of closure of account due to the death of the account holder.
- Nomination facility is available even in case of joint account.
I have opened SCSS account with BOI and extended the same for three years after expiry of Five years. Now I have completed 8 months of extension period and want to close my SCSS account. what is the policy.
I have my Senior Citizen Savings Scheme 2004 opened i n the year 2004 at New Delhi and now I would like to get the account transferred to Bangalore where I have now shifted due to some personal reasons. Please let me know if this is permissible under the rules or what is the other way out to get Savings transferred.
1. interest on SCSS is increased to 9.3%, but I am getting 9% on my existing deposit. why?
2. if I extend for 3 years now after completion of 5 years, will I continue to get 9% or the revises rate?
3. if I extend for another 3 years will I get 80c benefit once again?
4. if I donot extend and also donot close my account for say another 5 years what rate of interest will I get? please provide a number even if approximate.
thanks
FD at 9.5% for SC say at ICICI bank is much better than extending SCSS at 9%.
Your valued opinion please.
I am a NRI and OCI holder and senior citizen. I want to take advantage of this 5year fix deposit scheme. I am eligible for that or not? I have no intention to transfer money now and near future from India? Also suggest me some scheme
Issue of pension don’t give to me
MY SENIOR CITIZEN SAVING SCHEME A/C NO.31483571166 MATURED ON 28/10/2015. I REQUESTED THE CONCERNED SBI MAIN BR. AT GWALIOR TO EXTEND ITS PERIOD. THE BR. FIRST EXTENDED IT UPTO 28/10/2020. LATER CORRECTED THE EXTENDED DATE TO 28/10/2018, AS PER RULE. WHEN THE BANK FAILED TO TRANSFER DUE QUERTLY INTEREST IN MY SAVING A/C ; I APPROACHED THE CONCERNED BR.ON 10/03/2016. IN THE EFFORT TO TRANSFER THE INTEREST DUE ON 31/12/2016; MY ABOVE MENTIONED SCSS A/C IS CLOSED INADVERTANTLY; AND ENTIRE PRINCIPAL DEPOSIT WITH THE RATE OF SAVING INTERST TRANSFERRED TO MY SAVING A/C. THE BANK IS ASSURING THAT THEY WILL RECTIFY THE MISTAKE & WOULD NOT SUFFER ME THE LOSS OF INTEREST. BUT EVEN LAPSE OF LAST QUARTER NOTHING IS DONE.
MY SENIOR CITIZEN SAVING SCHEME A/C NO.31483571166 MATURED ON 28/10/2015. I REQUESTED THE CONCERNED SBI MAIN BR. AT GWALIOR TO EXTEND ITS PERIOD. THE BR. FIRST EXTENDED IT UPTO 28/10/2020. LATER CORRECTED THE EXTENDED DATE TO 28/10/2018, AS PER RULE. WHEN THE BANK FAILED TO TRANSFER DUE QUERTLY INTEREST IN MY SAVING A/C ; I APPROACHED THE CONCERNED BR.ON 10/03/2016. IN THE EFFORT TO TRANSFER THE INTEREST DUE ON 31/12/2015; MY ABOVE MENTIONED SCSS A/C IS CLOSED INADVERTANTLY; AND ENTIRE PRINCIPAL DEPOSIT WITH THE RATE OF SAVING INTERST TRANSFERRED TO MY SAVING A/C. THE BANK IS ASSURING THAT THEY WILL RECTIFY THE MISTAKE & WOULD NOT SUFFER ME THE LOSS OF INTEREST. BUT EVEN LAPSE OF LAST QUARTER NOTHING IS DONE.
THE RATE OF INTEREST OF SR.CITIZEN SAVING SCHEME ENHENCED TO 9.20% IN 2014-15 AND TO 9.30% IN 2015-16 .EVEN THEN ON DEPOSIT MADE IN THIS SAVING SCHEME ON 29/10/2010 I HAVE RECEIVED INTEREST @ 9.00% WHY IT IS SO. WHETHER ON EXTENDING THE DEPOSIT FOR 3 YEARS THE ENHENCED RATE OF INTEREST WOULD BE PAYABLE
I am a retired citizen and my age is 65 years. Is this SCSS scheme is still existing now so that I can invest my savings in this scheme to get interest at 9% or 9.3% as other banks offer only 8.25% maximum. Kindly advise me to invest my hard earned money.