SCSS is a government-sponsored program design to empower senior citizens. To reap the plan’s benefits, one may invest a little or a significant sum. Senior people may participate in the program by creating an individual or joint account with their spouses.
A Senior Citizen Savings Scheme Account is what it sounds like.
With an SCSS account, you may deposit a lump sum of 15 lakh and earn quarterly FD returns. Senior persons in India may participate in such a savings system by creating an SCSS account and Senior citizen FD rates are higher compare to other saving schemes.
An older adult may only open a single charge and one with their spouse. As a result, a person may maintain numerous accounts under the Senior Citizen Savings Scheme while keeping the deposit maximum of 15 lakh.
How Does SCSS Function?
The Senior Citizen Savings Scheme operates as follows:
By depositing a minimum of 1,000 and a maximum of 15 lakh, one may create an SCSS account with an authorize bank.
The older person may only deposit the employer’s retirement benefits. Furthermore, this sum must be deposit within one month after receipt. The term “retirement benefit” refers to any payment owe to the retire person and It covers PF, ex-gratia payments, leave encashment amounts, and other retirement benefits.
If the deposit amount exceeds the SCSS maximum limit, the excess amount will be returned
in addition the interest generate via SCSS is paying out quarterly. You may also set up auto-credit for a savings account at the same Post Office or via the Electronic Clearance Service (ECS).
The SCSS account may be terminate at any moment.
The SCSS account may also be extend for three years during the first year of maturity.
Criteria for Senior Citizen Savings Scheme Eligibility
To invest in the SCSS, a person must satisfy the following requirements:
A person above the age of 60: Individuals between 55 and 60 have enroll in a Voluntary Retirement Scheme (VRS) or superannuation.
Retired military personnel between the age of 50 and 60: The investment must be complete within one month after receiving retirement benefits.
Why Should You Choose a Senior Citizen Savings Plan?
Consider the following reasons for investing in the Senior Citizen Savings Scheme:
- The Senior Citizen Savings Scheme is a secure investing choice for retirees since it is a government-sponsor scheme.
- The SCSS plan is easy to invest in, and it is accessible at any Post Office and various accredited institutions.
- The Senior Citizen Savings Scheme provides excellent fd returns at high senior citizen FD rates.
- SCSS, in addition to the chance to earn FD returns, provides tax advantages under Section 80C of the Income Tax Act of 1961 and You may claim this sum up to 1.5 lakh every fiscal year.
- The Senior Citizen Savings Scheme’s five-year term may be increase to three years.
- The savings plan allows you to end the account early without any difficulty.
Senior Citizen Savings Scheme Benefits
Amount Invested: SCSS requires a minimum investment of Rs. 1,000 and a maximum investment of Rs 15 lakh.
Interest Rates: The interest rate on the SCSS is 7.4 per cent per year. The senior citizen FD rates are review periodically by the Indian government.
Account Closure at SCSS: The Senior Citizen Savings Scheme has a term of five years. If the account holder dies before or after the exceed maturity date, the SCSS account will be terminate, and the principal amount plus interest will be repaid to the nominee.
Account Closure Too Soon: The SCSS account might be terminate before the tenor is complete . If the account is cancel after one year, however before two years and a 1.5 per cent penalty will be assess. A sum equivalent to 1% will be remove from an account closing after two years but before the completion of five years.
Account Extender: The account holder may prolong the program for three additional years within one year of maturity after that
How to Open an SCSS Account with a Bank
Step 1: Go to your local bank branch or an authorize bank where you have a savings account.
Step 2: Request a Senior Citizen Savings Scheme application form and fill it out completely.
Step 3: Submit the require papers and the application form to the bank.
Step 4: A bank customer service representative will process your request and Once the money receive your SCSS account will be establish