Post office Senior Citizen Saving Scheme (SCSS)

 
Rate of Interest
Senior Citizen Saving Scheme (SCSS) offers a return of 8.3 per cent per annum. In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. There shall be only one deposit in the account in multiple of Rs. 1,000 and the maximum amount not exceeding Rs. 15 lakh, according to indiapost.gov.in.
Features
An individual of the age of 60 years or more is eligible to open this account.
An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.
A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).
Maturity period
The maturity period of senior citizen saving scheme is five years. The account can be transferred from one post office to another. Any number of accounts can be opened in any post office subject to the maximum investment limit by adding balance in all accounts.
After maturity, the account can be extended for further three years within one year of the maturity by giving application in the prescribed format. In such cases, the account can be closed at any time after expiry of one year of extension without any deduction.
Premature closure
Premature closure of the SCSS account is allowed after one year on deduction of an amount equal to 1.5 per cent of the deposit and after two years on deduction of an amount equal to 1 per cent of the deposit.