Senior Citizen Savings Scheme: Savings Scheme account can be prematurely closed before one year after the date of opening of account. Also, the Senior Citizen Savings Scheme account can be extended for further three years.
A scheme which currently fetches an Interest rate of 8.6% per annum, is a popular small saving scheme meant for senior citizens. Maturity Period of five years helps them earn regular income in their retirement years. A person with the age of 60 years or more can open the senior citizens savings scheme account. In some special cases, an individual aged 55 years or more but less than 60 years and who has retired on superannuation or under VRS can also open the account. Senior Citizen Savings Scheme currently fetches an interest rate of 8.6%.
Any number of accounts can be opened in any post office subject to maximum investment limit of ₹15 lakh by adding balance in all accounts. After maturity, the account can be extended for further three years.
Senior Citizens Savings Scheme latest rules explained:
1) A Senior Citizens Savings Scheme account can be prematurely closed before one year after the date of opening of account. But the interest paid on the deposit will be recovered from the deposit and the balance will be paid to the account holder.
2) In case the Senior Citizens Savings Scheme account is closed between one year and two years of account opening, an amount equal to 1.5% of the deposit shall be deducted and the balance shall be paid to the account holder.
3) If the Senior Citizens Savings Scheme account is closed on or after two years of account opening, an amount equal to 1% of the deposit is deducted and the balance will be paid.
4) If the Senior Citizens Savings Scheme has been extended once, an account holder can close the account after one year from the date of extension of the account without any deduction.
5) In case of death of the Senior Citizens Savings Scheme depositor before maturity, the account will be closed and the deposit will be refunded along with interest at the rate of SCSS till the date of demise and at the rate of savings account till the date of final closure of the account.
6) In case of a joint account, or where the spouse is the sole nominee, the spouse may continue the account if the spouse meets eligibility conditions under the scheme on the date of death of the account holder.
7) If the spouses have opened separate account or accounts under this scheme and either of the spouses dies during the currency of such account or accounts, the name of then account or accounts standing in the deceased account holder shall not be continued and shall be closed.
8) In case the depositor does not close the account on maturity or does not extend the account for a period of three years by making an application within a period of one year after the maturity period of five years, the account shall be treated as matured and post maturity interest at the rate applicable to the deposit under post office savings account only will be paid for the period beyond maturity till the closure of the account.
