Senior Citizen Saving Scheme

There are numerous saving schemes designated for people above the age of 60. These plans rapidly benefit the individuals getting them better long term saving options, unmatched security and enjoy any all the features associated with the government-sponsored savings program. One can opt for these schemes through certified banks and network post offices all over India.

The senior citizen savings scheme (SCSS) is one of the popular saving schemes for patrons where the savings account extends for up to 5 years with additional 3-year extension upon maturity.

This scheme is a lubricative and savings oriented option for senior citizens who can earn interests up to 8.6% (FY 2016-17). The person has to add one deposit to the account initially that is multiple of 1000 but not more than 15 lakhs.

Benefits

The advantages of the scheme are first its easy availability. One can get the application form from any of the local banks or post offices nearby.

  • The scheme is highly reliable as the government of India has sponsored the investment product which ensures security to the investment.
  • Further, an individual can have multiple accounts individually or as a joint venture.
  • One can earn high returns up to 8.6% p.a. with a flexible tenure of 5 years further stretched to 3 more years. You have the option of making a medium range investment or long term plan.
  • One can save tax in this investment U/S 80C. Under urgent circumstances, one can terminate the account beforehand itself. However, the account should exist for at least 1 year. One will have to pay a penalty of 1.5% of total funds after one year which is reduced to 1% after two years.
  • Minimum Documentation required for the opening and terminating the accounts. KYC documents like Birth Certificate, Voter ID, PAN, Senior citizen card are mandatory to prove your age.
Eligibility criteria

In order to be eligible, one should meet any of the following criteria:

  • The person should be aged 60 years or above.
  • Must be of the age 55-60 if taken a VRS and should open the account within one month of the retirement benefits received. The amount invested cannot exceed retirement benefits sum.

If you plan for a joint account, the primary holder should be the age mentioned above requirements. No age restriction on the next applicant.

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