Senior Citizen Savings Scheme (SCSS) |
|
| Eligibility | Individual age above 60 years, VR -55 age. |
| Interest rate | 8.7* |
| How to pen | any Post office or Bank |
| Investment Limit (only one time/ lump sum) | 1000 to 15 Lakhs |
| Premature withdrawal | After 1 year & within 2 years with 1.5% penalty, after 2 years 1% penalty on interest earned. |
| Premature closing | In case of death only |
| Maturity / Lock-in Period | 5 Years |
| Extension | 3 years |
| Tax Benefits | 1.5 Lakh Every year under 80C,
For withdrawal 50,000 under 80TTB. |
SCSS Intrest rates Year wise 2019
| Period | Interest Rate |
| April to June 2019 (Q1 FY 2019-20) | |
| Jan to March 2019 (Q4 FY 2018-19) | 8.7 |
| Oct to Dec 2018 (Q3 FY 2018-19) | 8.7 |
| Jul to Sep 2018 (Q2 FY 2018-19) | 8.3 |
| Apr to Jun 2018 (Q1 FY 2018-19) | 8.3 |
| Jan to March 2018 (Q4 FY 2017-18) | 8.3 |
| Oct to Dec 2017 (Q3 FY 2017-18) | 8.3 |
| Jul to Sep 2017 (Q2 FY 2017-18) | 8.3 |
| Apr to Jun 2017 (Q1 FY 2017-18) | 8.4 |
SCSS VS PMVYY
NO cumulative interest’, unlike a bank fixed deposit (FD) or NSC (National Saving Certificate). 5 years lockin,
Post Office Monthly Saving Scheme 7.7% Interest payable monthly. lockin period of 5 years.
SCSS Pays Quarterly once
PMVYY:
- Investment amount same as SCSS but in case of two senior citizens 15*2 = 30 lakhs
- 10 Years Maturity Period.
- 75% of loan After 3 years
- Premature Closing: Only critical illness 98% of the value.
- Mode of Pensions payment: Monthly/3/6/12 months but SCSS only Payouts Quarterly once in 3 months.
- Interest rates: Based on pension withdrawals: monthly 8%, Quarterly 8.5%, half year;y 8.15% yearly 8.3% but SCSS only have single Interest rate 8.7%* (Both are monitor & regulates quarterly):
- No Tax Benefit for PMVYY
Senior Citizen saving Scheme calculation
| Investment | interest rate | Quarterly | Monthly |
| 5 lakhs | 8.7 | 10875 | 3625 |
| 10 lakhs | 8.7 | 21750 | 7250 |
| 15 lakhs | 8.7 | 32625 | 10875 |
Interest payable on March, June, September, December end of the month.
How to open the Senior Citizen Saving Account Scheme at the Post Office/bank?
- Visit the Post Office with your KYC (ID & Address Proof) Ask them To open SCSS Account,
- Pay the Minimum Amount, Then your Account Will be Open, make regular Payments either Monthly Or Annual offline or online.
- Don’t forget to deduct this amount if are under the income tax slab.
- You should also open Saving Account with Post office.
Opening at the bank:
the same Process applies, but you have already KYC Seeded with Bank there may be an option to open SCSS online. but you have to visit the bank in most cases.
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