India Post – Senior Citizen Savings Scheme Account
FEATURES: The account can be opened by an individual above 60 years of age. He may open one or more account in the multiples of Rs 1,000, subject to a maximum limit of Rs 15 lakh. No withdrawal is permitted before five years from the date of opening the account. The depositor may extend the account for a further period of three years. Premature closure of account is permitted. Interest can be automatically credited to savings account, provided both the accounts stand in the same post office.
OPTIONS & CHARGES: Premature closure of account is permitted after one year, but before two years on deduction of 1.5 per cent of the deposit. Account closure is also allowed after two years, but before date of maturity on deduction of one per cent of the deposit. Premature closure of the account is allowed after three years. In case of death of the depositor before maturity, the account will be closed and deposit refunded without any deduction along with interest. In case of a joint account, or where the spouse is the sole nominee, the spouse may continue the account on the same terms and conditions
INTEREST RATE: SCSS Account provides 9.30 per cent per annum interest with effect from April. Investment in SCSS Account and transfer of interest accrued into Post Office Recurring Deposit Account liked to a savings bank
account through a written request, earn a combined interest of about 10.5 per cent.
FC VERDICT: Return at 9.30 per cent per annum from the date of deposit on a quarterly basis is a good regular income source that SCSS Account provides to the senior citizens. In present circumstances, it competes with returns from peer products such as bank fixed deposit, debt or equity market products. It is also one of the safest investment option for the senior citizens. Also, the investment under this scheme qualify for benefits under Section 80C of the Income Tax Act, 1961. With the wide post office network all across the rural and urban areas of the country, it is a very convenient for accessing the accounts.
