Senior Citizen Saving Scheme is the Saving Scheme issued by Government to Senior Citizens. Under this scheme, Senior Citizens can either invest by getting government authorized public / private sector banks or by opening an account open in the post office. Regardless of whether the accounts are opened in the Post Office or both of the Banks have Account Opening Conditions, Rules & Regulations are the same.
Senior Citizen Saving Scheme is a very strong Saving Scheme to achieve Long Term Saving Goal. This scheme has been launched by keeping the elderly citizens in mind, who spent their whole life to support their family members and at the end of their life they have no source of income besides retirement money.
Benefits of Senior Citizen Saving Scheme
- Since this scheme is a scheme issued by Government, it is considered as a very reliable scheme and there is no risk of non payment.
- Any amount of Amount Investment in this scheme can also be taken as Tax Rebate under section 80C of Income Tax Act, 1961.
- If you have a SCSS account open in your bank or if you have a SCSS account open in the Post Office, if you have a Post Office Savings Account, then whatever interest accrued in your account under this scheme It can also be taken to the facility of crediting directly to the Saving Account.
- The 24 X7 Customer Service is available in addition to Phone Banking Service.
Features of Senior Citizen Savings Account
- An individual person whose age is 60 years or more on the day of opening, can open his account in this scheme. Individuals whose age is 55 years or more but in less than 60 years, they can also open their account in this scheme.
- Getting an account open in this scheme is a very simple process. Just as any interested person, by going to their local bank or post office, fill in amounts and fill an application form, and submit the account as much as you want to deposit amount.
- Maturity Period of this scheme is of 5 years.
- There are no eligible to get NRI (Non Resident of India) and HUF (Hindu Undivided Family) Person Account Open in this scheme.
- Minimum 1,000 rupees and maximum 15 lakh rupees can be invested in this scheme.
- Amount can not be withdrawn from the account for one year from the date of account opening.
- You can not take loan facility in exchange for this scheme.
- Depositors can deposit only Lump Sum Amount only once in a year and this Amount should also be in multiple of Rs 1,000.
- Depositor can invest in one by opening an existing account, according to its Individual or Joint Capacity. But the total Amount deposited in all the accounts should not exceed the limit of maximum Amount to be deposited under the scheme.
- Like all other Post Office schemes, this scheme can also be opened by both Account, Cash Amount or Cheque, but in the case of Cheque opening an account, the same day Cheque will have Realization in Government Account. The date of birth will be accepted.
- Nomination facility is also available which you can take if you want to get the account open, or even after Account Open, whenever you want.
- SCSS accounts opened in the post office of a city in India can also be transferred to another post office in India.
- In this scheme, Joint SCSS Account can be opened but can not get Joint Account Open with anyone, but Joint Account Open can be opened only with Spouse. I.e., can be Joint Account Open with the husband's wife and also the husband's husband.
How to Open SCSS Account
- To open SCSS Account, you must fill out and submit the Account Opening Form.
- If Amount to be deposited in the account is less than 1 Lakh, then it will be Accepted in Cash Amount and if Amount to be deposited in Account is more than 1 Lakh, then it is known as Cheque or Demand Draft (also known as DD Goes through) will be accepted through.
- There should be two Passport Size Photographs.
- Account Holder Must Have Age Proof For this, you can use Birth Certificate, Voter ID Card, Pan Card, Ration Card, School issued by Birth certificate or Driving License, etc. issued by the District Office that registers birth and death registration, Passport, Senior Citizen Card Are there.
- You can use Passport or Pan Card for Address and Identity Proof.
- It is compulsory to have a basic proof for KYC Verification.
Important things related to the Senior Citizen Saving Scheme
This scheme is a 5 year scheme like Fixed Deposit Scheme and once you have matured, you can close it or if you want, you can extend that mature account too. But if you have not closed the account or expanded the account, then such account can be closed after you have matured, but when you do not close the account, then the Post Office on Available Amount Saving Account's Interest Rate remains Applicable and the rate in which the account is closed is applicable till the end of last month.
Account is not Automatically Extend, but if you want Account when mature after 5 years, then you can extend the account for 3 years. However, for this you have to submit Form B within one year from the date of maturity.
Once you get the Extend account, then a year can be made even after one year from the date of Extended Extension without any penalty. This means that you can withdraw the account after 6 years, without any kind of Penalty Pay Amount Withdraw.
Take care of a special thing that you can not extend the account if you want, you can make Balik Account Extend only once after maturity, not after that. When the extended account is mature, then it can not be further extended and extended.
You can keep Nominee for one or more people for the same account, and if you want you can also change or cancel the Nominee Person before the account is mature. For this, you will need to present a Passbook with Nominee Registration, Change or Cancel along with Form C submission. Registering Nominee, changing or canceling etc. Facility is Free of Cost.
If the person who deposits Amount before the account is matched before the maturity of the account, then the account will be closed and the amount deposited in the account is given to the Nominee Person of Account, and if the account is not nominated If Nominee has died, then the legal heirs of the Depositor are given Amount.
If Account is closed after one year of Account but after two years, 1.5% of Deposit Amount in Account is Deduct as Penalty and the balance is given to Amount Depositor and if Account is open date from date After two years the account is closed, 1% of Deposit Amount in Account is Deduct as Penalty and given to the remaining Amount Depositor.
If any Government Employee invests his savings in the Senior Citizen Saving Scheme after retirement, there is no problem in it, but if such employees are employed at the same time and their first salary is in their hands, then at the same time Should be used to invest in.
Now you will think about where to invest. So there are many people who still consider Banking Deposit, Recurring Deposit, Saving Account, Land & Building Purchase as an investment, but there are two types of schemes for investing in fact.
Safe and Secure Scheme, like a Government Scheme
Risky Scheme like Second Mutual Funds, Equity Funds, Debt Funds
Now if you invest in a Safe Post Post Office Safe & Secure Scheme, you will also return the government according to your account, because all these schemes are issued by Government, hence Safe and Secure Scheme and invested in such a scheme. The money is not likely to be lost, but then you will have to be happy with just a few Returns on this type of scheme.
But we would like to advise you that when you join a job, your advancement time starts, so you should not be satiate by earning a small return by investing in this type of Safe and Secure Scheme of Government, rather like any Risky Instrument You should earn maximum returns by investing in Mutual Funds, Equity Funds, Debt Funds etc.
Because the Safe Scheme has been created by the government so that when you are retired or you take the VRS (Voluntary Retirement Scheme) then you would have been earning from somewhere and investing in such a scheme, keep your earnings running because the Retired Person There are such people who have no way of income after the retirement, so they want to invest their savings in a safe, secure scheme.
But if there are such people who have just started their job life, then they should not invest in such a Secure, Safe Scheme.
In this way you can keep your need & goals in mind and choose from both types of Instruments that you should invest in Instrument because if you have to achieve a Financial Goal, then you should invest in the right place. Otherwise you will never be able to achieve Achieve your goals.