How to open a Senior Citizen Savings Scheme account

Source: Economic Times

The Senior Citizen Savings Scheme (SCSS) is a retirement savings scheme. It provides quarterly interest payouts and the investment allows tax deduction under Section 80C of the Income Tax Act.

Who is eligible
Individuals over 60 can open the SCSS account. Also, a person who is 55 years old and has taken voluntary retirement can also open the account after receiving retirement benefits. It can be opened jointly with one’s spouse. The joint holder (spouse) has no entry age bar.

Where
An SCSS account can be opened in any post office or a public sector bank in India.

Investment amount
The minimum amount that can be invested is Rs 1,000. The maximum amount is Rs 15 lakh.

Procedure

To open a open SCSS account, senior citizens can visit the post office or bank branch and fill up the form. The form should be accompanied with KYC documents—age proof, address proof, identity proof and payment instrument i.e. cheque for the deposit amount. Also, the nomination can be made while opening the account or at a later date.

Tenure
The maturity period of the account is five years. After this, the account holder has the option to extend the account for a period of three years by filling a form within one year from the date of maturity.

Points to note
1. Any number of SCSS accounts can be opened, subject to maximum investment limit, by adding balances in all accounts.
2. Though the investment is eligible for 80C deduction, interest received on the investment is taxable (over and above tax free interest limits for senior citizens).

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