Senior Citizens Savings Scheme - Eligibility, Features, Details, etc

For those over the age of 60, the Senior Citizen Savings Scheme (SCSS) is one of the most favoured fixed income investment options. The major goal of this programme is to assist insured older individuals in securing a steady stream of income once they retire. Because SCSS is a government-backed investment plan, it offers quarterly guaranteed returns. SCSS is available in India through accredited banks and post offices.

This plan offers retirees a comprehensive bundle as well as an excellent investment potential. This plan provides a number of benefits, including tax breaks, monthly dividends, and capital protection. If the respective individual has chosen voluntary retirement, the minimum age to participate in this plan is 60 years old; however, an individual can participate in this scheme at the age of 55 if they select it within a month after receiving their retirement income. To find out more on Senior Citizens Savings Scheme, read on.

Features Of Senior Citizens Savings Scheme (SCSS)

Following are some listed features of Senior Citizens Savings Scheme (SCSS) -

1. Scheme Maturity Period

This scheme has a 5-year maturity term. Individuals can, however, extend the maturity period by 3 years by filing an application in the proper forms within one year of the account's maturity date. However, after the account expires it can be closed without incurring any fees.

Must Read: Ways To Achieve Financial Independence Post Retirement

2. Nominations

Nominations can be added to the policy either when the account is opened or after it has been opened.

3. Account Holdings

Individuals have the option of operating several accounts on their own or opening a joint account with their spouse. Joint accounts, on the other hand, may only be formed with the spouse, and the first depositor is the joint account's investor.

4. Amount Limit

There may only be one deposit in an account at a time. The highest amount that may be placed is Rs.15 lakh, and it must be in multiples of Rs.1,000. Cash deposits of less than Rs.1 lakh are accepted, however deposits of more than Rs.1 lakh must be made by cheque. When paying by check, the day the check clears becomes the account's starting date.

5. Transfer Of An Account

It is possible to move a SCSS account from a bank to a post office and vice versa. The procedure of creating a SCSS account is likewise simple and straightforward.

6. Premature Withdrawal

Premature withdrawal is permitted after one year of account opening. Premature withdrawals after one year and two years, however, will be assessed a 1.5 percent and 1% fee, respectively, of the entire amount deposited.

Senior Citizens Savings Scheme (SCSS) Eligibility

Following is the eligibility criteria of Senior Citizens Savings Scheme (SCSS) for an individual -

1. A person who has reached the age of 60 or more at the time of creating a SCSS account.
2. Individuals who have reached 55 years of age but are under 60 years of age and have retired on superannuation are eligible to create a SCSS account.
3. Individuals who have reached the age of 55 and have retired before the SCSS regulations went into effect are eligible for the scheme.
4. Retired Defence Services individuals, regardless of age, are eligible for the SCSS. These individuals must, however, meet a number of additional special requirements.
5. Non-Resident Indians (NRIs) are ineligible to create an account with the SCSS.
6. HUFs (Hindu Undivided Families) are also ineligible to create a SCSS account.

Tax Rebates Under Senior Citizens Savings Scheme (SCSS)

Individuals are entitled for tax deductions on investments up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961. The tax would be deducted at source if the interest produced is higher than Rs.10,000 per annum.

Endnotes

In order to lead a stress-free retirement, an individual must properly prepare for their respective future. Financial independence is a main objective of retirement planning, which may be achieved through investing in a thorough pension plan. Pension plans help people secure their financial futures and enjoy a stress-free retirement.

Also Read:  Atal Pension Yojana - Eligibility, Features, Benefits, Forms And Operation

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.