Post office senior citizen savings account (SCSS) can be opened by an individual of 60 years or above.Senior Citizen Savings Scheme (SCSS), one among nine small savings schemes offered by post office, serves as an investment avenue and helps in generating wealth for a successful retirement life.
Post office Senior Citizen Savings Scheme has a maturity period of 5 years, which can be extended for further three years within one year of maturity by giving application in prescribed format, said India Post on its official website- indiapost.gov.in.
India Post or Department Of Postsis run by government and has a network of more than 1.5 lakh post offices in country.(Post Office 15-Year Public Provident Fund Account: Returns, Tax Benefits)EligibilityPost office senior citizen savings account (SCSS) can be opened by an individual of 60 years or above.
An individual of age of 55 years or more but less than 60 years who has retired on superannuation or under VRS (Voluntary Retirement Scheme) can also open SCSS account subject to condition that account is opened within one month of receipt of retirement benefits and amount should not exceed amount of retirement benefits, noted India Post.Interest RatesPost office SCSS earns an interest rate of 8.7 per cent per annum, which is payable from date of deposit on March 31/ September 30/December 31 in first instance and thereafter, interest are payable on March 31, June 30, September 30 and December 31.Quantum of contributionThere can be only one deposit in SCSS account in multiple of Rs 1,000 where maximum amount must not exceed Rs 15 lakh, noted India Post.
Also, any number of SCSS accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.Tax benefitsTax Deducted At Source (TDS) is deducted at source on interest if interest amount is more than Rs.
10,000 per annum.
Investment under this scheme qualifies for benefit of Section 80C of Income Tax Act, 1961 from April 1, 2007.Premature closureUnder this scheme, premature closure is allowed after one year on deduction of an amount equal to 1.5 per cent of deposit and after 2 years on deduction of an amount equal to 1 per cent of deposit.