The Senior Citizens Savings Scheme (SCSS) is primarily for senior citizens of India that offers regular income and is a risk free  tax saving  investment . Investing in SCSS is a very good opportunity for senior citizens above 60 years to make money. This is an effective & long term saving option which offers security .and features that are usually associated with any government sponsored savings or investment scheme. These schemes are available through certified banks and post office across India

 Eligibility for SCSS

The following people/groups are eligible to opt for  SCSS :-

1. Senior citizen of India and age of more than 60 Years

2. Retirees who have opted for the Voluntary Retirement scheme (VRS) or Superannuation with the age between 55-60. Here the investment has to be done within a month of receiving the retirement benefits

3. Retired defence personnel with minimum age of 50 years

4. HUFs and NRIs are not allowed to invest in this scheme

 Investment Amount

An individual can invest maximum amount of Rs 15 lacs, singly or jointly in an SCSS account (in multiples of Rs 1,000). The amount invested in the scheme cannot exceed the money that has been  received on retirement. Hence, the individual can invest either Rs 15 lacs or the amount received as a retirement benefit whichever is lower. The account can be opened by cash for amount below Rs 1 lakh and by cheque for amount above Rs 1 lakh

 Benefits of investing in the senior citizen savings scheme

1. Safe and Reliable : This is a Indian government sponsored investment scheme and hence is considered as the safest and reliable investment option.

2.Simple and easy process : The process to open an account is simple and can be opened at any authorised banks and any post offices across India and transferable across India.

3.Good returns : At 8.3% the return rate is good as compared to a savings or FD account.

4. Nomination : Nomination facility is available at the time of opening an SCCS account by submitting an application as part of Form C  which is also accompanied by the passbook to the Branch.

5. Tax benefits : Tax deduction up to Rs 1.5 lakh can be claimed under Section 80C of Indian Tax Act 1961.

6. Flexible : Tenure of this investment scheme is flexible and it has an average tenure of 5 years but can be extended up to 3 more years.

 How to open SCSS  Account 

The SCSS account can be opened in any of the authorized banks or post office branch across India with following documents:

1. Form A to be filled  for opening SCSS Account

2. Identity proof like PAN card , Passport and

3. Address proof such as Telephone bill , Aadhar card .

4. Age Proof Document is required like as Passport, Senior Citizen Card, Birth certificate issued Corporation or registrar of births and death, Voter ID card, PAN card etc

5. 2 Passport size photographs.

All the above documents should be self attested

 Interest Rates on SCSS

 Tenure of the fund & withdrawal

The tenure of this scheme is 5 years with the option to extend it for further 3 years. In order to extend the scheme for another 3 years after completion of 5 year tenure the investor needs to submit the duly filled Form B which is  regarding the extension of the scheme. Only one extension is allowed and such extended accounts can also be closed after one year of extension without any penalty.

The premature withdrawals are allowed  but only after 1 year of account opening. When the closure of the account after one year takes place but before the end of 2 years, 1.5% of the deposit shall be deducted as pre-mature withdrawal charges. On the closure of the account after 2 years an amount equal to 1% of the deposit shall be deducted as charges

In the event of death of the depositor no charges or penalty are levied for premature closure of the account.

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