Senior Citizens Savings Scheme

Senior Citizens Savings Scheme



WHAT AM I I am a risk-free investment avenue, especially designed for senior citizens. I am a fixed-return instrument with a government of In- dia guarantee and I am available at all local post offices that pro- vide savings accounts. I am also available at some commercial banks.

WHEN CAN YOU INVEST IN ME To invest in me, you need to be at least 60 years in age. However, if you have retired under a voluntary or special voluntary scheme, the minimum age limit for you to invest in me is 55 years, but you can do so within three months from the date of your retirement. Moreover, retired personnel of defence services (excluding civilian defence employees) can invest in me, irre- spective of the age limit, provided they meet specified conditions.
You can open me just in your name or in a joint name with your spouse. However, I do not permit you to open more than one ac- count in the same post of- fice or bank in the same calendar year. You can open separate ac- counts in multiple post offices or banks, though.

WHAT YOU SHOULD KNOW ABOUT ME You can earn an interest rate of 9% per annum through me. The interest is pay- able quarterly and will be directly credit- ed to your savings account if you open me in the same post office or bank where you have a savings account. Remember that even if you do not claim your interest every quarter, the interest amount accrued will not earn any interest.

The minimum amount you can deposit in me is Rs1,000 and the maximum is Rs15 lakh. You can invest only in multiples of Rs1,000. I mature after five years and allow you to extend the term by another three years.

I also let you save tax since I qualify for deduction under sec- tion 80C of the Income-tax Act.

WHEN CAN YOU WITHDRAW FROM ME You can't withdraw from me before five years. Therefore, I am suitable for those looking for regular income, which comes through interest payments.

Though I come with a lock-in of five years, you can close me within two years of opening me at a cost--1.5% of the total de- posit you have made. If you close me prematurely after you have completed two years with me, the cost is 1% of the total deposit.

In case you die before maturity, I will be automatically closed and the proceeds will be refunded without any deduction along with the interest earned till then. I also give you the nomination facility.

BINDISHA SARANG