Post Office Senior Citizen Savings Scheme (SCSS) rules updated after notification of the enhanced deposit limit.
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Following the notification of the enhanced deposit limit under the Senior Citizen Savings Scheme (SCSS), the Department of Posts has updated the details of the scheme on its official website. Following are the key points you should know about the updated SCSS account offered by Post Office.
Interest rate: The SCSS interest rate is 8.2 % per annum.
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Interest payment: The interest will be payable from the date of deposit of 31st March/30th September/31st December in the first instance and thereafter, the interest will be payable on 31st March, 30th June, 30th September and 31st December.
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Minimum and maximum amount: You can make only one deposit in the account in multiple of Rs 1000 and maximum not exceeding Rs 30 lakh in all SCSS accounts opened by an individual.
Tax benefit: SCSS deposits will qualify for tax deduction under Section 80C subject to the limit of Rs 1.5 lakh.
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Who can open: Following categories of individuals can open SCSS accounts:
- An individual aged above 60 years
- Retired Civilian Employees above 55 years of age and below 60 years of age. Such individuals are required to make their SCSS investment within 1 month of receipt of retirement benefits.
- Retired Defense Employees above 50 years of age and below 60 years of age. Such individuals much make their SCSS investments within 1 month of receipt of retirement benefits.
SCSS joint account: You can open SCSS account in an individual capacity or jointly with spouse only. However, the whole amount of deposit in a joint account will be attributable to the first account holder only.
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SCSS maturity: You may close SCSS account after 5 year from the date of opening by submitting prescribed application form with passbook at concerned Post Office.
SCSS account extension: You can extend the SCSS account for 5 more years from the date of maturity by submitting prescribed form with passbook at the concerned post office. For extension, you will have to apply within 1 year of maturity. The extended account will earn the same interest as applicable on the date of maturity.
