Post Office Savings Scheme: For senior citizens in India who want a stable income, investing in post office savings schemes is one of the most popular forms of investments. For this, the post office, backed by the government, has come up with a scheme specifically meant for the older population who look to have a secure future. To ensure senior citizens get a fixed income after their retirement, the post office has in place the Senior Citizen Savings Scheme, or SCSS. Savings schemes by the post office are often preferred by the older population since they are not technologically savvy and are not too compatible with digital technology.
The Senior Citizen Savings Scheme, as its name suggests, is meant for senior citizens and is introduced by India Post. Because it is meant for people above the age of sixty, a policy under this scheme can only be opened by citizens in that age bracket on the date of opening this scheme. But it must also be kept in mind that there is a place for reservations for certain beneficiaries under conditions.
Opening an Account Under Post Office SCSS
As per the India Post website, “There shall be only one deposit in the account in multiple of Rs 1,000 maximum not exceeding Rs 15 lakh.” This means that subscribers can only deposit an amount once, and the interest will be calculated base on that principal — unlike PPF accounts. However, a subscriber can open more than one SCSS account, but the total deposit must not exceed the maximum limit.
Interest Rates of Post Office SCSS Account
According to India Post, interest on the deposit amount of post office senior citizen savings scheme account will be paid on 31st March, 30th June, 30th September and 31st December, starting from the date of deposit on a quarterly basis. At present, the Post Office SCSS account provides an interest rate of 7.4 per cent. If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.
Interest is taxable if total interest in all SCSS accounts exceeds Rs.50,000/- in a financial year and TDS at the prescribed rate shall be deducted from the total interest paid. No TDS will be deducted if form 15 G/15H is submitted and accrued interest is not above prescribed limit.
Who Can Open Post Office SCSS Account?
– An individual above 60 years of age.
– Retired civilian employees above 55 years of age and below 60 years of age, subject to condition that the investment is going to be made within one month of receipt of retirement benefits.
– Retired defence employees above 50 years of age and below 60 years of age, subject to condition that the investment is going to be made within one month of receipt of retirement benefits.
– Account can be opened as individual capacity or jointly with spouse only.
– The whole amount of deposit in a joint account will be attributable to the first account holder only, as per the Post Office website.
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