Post Office Senior Citizen Savings Scheme (SCSS) Interest Rate 2022: SCSS is a reserve funds item accessible for senior citizens aged 60 or above. On the date of opening a SCSS account, the supporter should be 60 years of age or above. Notwithstanding, age unwinding is given to specific classes of people (see beneath). The plan offers a good loan fee and ensured pay over the time of store to senior residents.
With the SCSS account, senior residents can get quarterly revenue on stores up to Rs 15 lakh. Read on to find all important details about SCSS, interest rate and how to calculate returns.
Where to Open SCSS Account
A senior citizen can open an SCSS account with Post Office and at some banks.
SCSS Joint Account Rule
A senior resident can hold a SCSS account in his/her singular limit or mutually with the companion. The two life partners can open a solitary SCSS record and shared services with one another. Nonetheless, on account of a shared service, age limitation will apply just to the principal holder. The entire measure of store is owing to the first account holder just in quite a while.
SCSS account nominee
The depositor is allowed to nominate one or more than one person. The name of the nominee can be cancelled or changed by the depositor.
SCSS Term/Maturity Period
The amount deposited in the SCSS account acquires revenue for a term of five years. A record holder can apply for a one-time frame expansion of three years inside one year of the development of the record.
The store in a drawn out SCSS record will acquire revenue at the rate pertinent on the date of development.
Additionally, the deposit made at the hour of opening of a SCSS account is paid to the record holder on or later the expiry of a long time from the date of opening the account, or 8 years in instances of a lengthy record.
SCSS Maximum and Minimum Deposit
You can invest a maximum of Rs 15 lakh in an SCSS account. The minimum amount required to open the SCSS account is Rs 1000.
Can you have multiple SCSS accounts?
Yes. A senior citizen can open multiple SCSS accounts. However, the combined deposits in all such accounts should not be more than Rs 15 lakh at any point of time.
SCSS Withdrawal Rule
Multiple withdrawals from an SCSS account is not allowed. While interest on SCSS investment is payable on a quarterly basis, the principal amount (deposit made at the time of opening of the account) is paid on or after the expiry of five years, or after the expiry of eight years in case of an extended account.
SCSS Interest Rate 2022
Currently, the SCSS interest rate is 7.4%. However, the Government of India revises the SCSS interest rate, along with other savings schemes, on a quarterly basis. So the SCSS Interest Rate 2022 (for the first quarter of the New Year) will be declared by December 31, 2021.
SCSS Interest Rate Calculation: Examples
According to SCSS Rules, the premium acquired on deposits in the account is paid on a quarterly premise. In the event that the account holder doesn’t guarantee the payable premium, such a sum doesn’t acquire any extra interest.
SCSS account holders can pull out payable premium through auto credit into an investment account.
At the current 7.4% premium on the SCSS account, a store of Rs 15 lakh will bring Rs 5,55,000 as premium in five years. The quarterly premium kept to your bank account for this situation will be Rs 27,750.
In the event that you have stored Rs 10 lakh in the SCSS account, the absolute premium in five years will be Rs 3.5 lakh and the quarterly premium will be Rs 18,500.
SCSS Age Limit
The required age of an individual to open an SCSS account is 60 years or above. However, there are certain exceptions to this rule.
Civilian employees above 55 years of age and below 60 years can open an SCSS account only within 1 month of receipt of retirement benefits.
Retired Defense Employees above 50 years and below 60 years of age can also open the SCSS account within 1 month of receipt of retirement benefits.
SCSS Income Tax Benefit
The deposits/venture made in a SCSS account fit the bill for allowance under Section 80C of the Income Tax.
As per the authority Post Office site, the premium is available in the event that the all out revenue in all SCSS accounts is more than Rs 50,000 in a monetary year. In such cases, TDS is deducted from the all out interest paid.
Notwithstanding, no TDS is deducted assuming the record holder submits structure 15G/15H and the gathered interest isn’t more than as far as possible.
SCSS Premature closure Rules
A SCSS account holder can close the record pre-maturely any time in the wake of opening the record. In the event that the record is shut before 1 year, then, at that point, no interest is payable. Assuming interest has been paid then that is recuperated from the chief sum.
In the event that the SCSS account is shut between 1-2 years, a sum equivalent to 1.5% is deducted from the chief sum.
Assuming that the SCSS account is shut between 2-5 years from the date of opening the record, then, at that point, a sum equivalent to 1% of the chief sum is deducted.
You can close a lengthy SCSS account whenever later the expiry of 1 year from the date of augmentation. And no deduction is made in this case.
Should you open an SCSS account?
SCSS is an alluring plan for senior residents as it offers a reliable pay and for the most part higher loan fees.
In any case, as far as possible on the interest in the SCSS account restricts the pay that senior residents can produce. In any case, it is a decent plan for somebody who has a singular amount add up to contribute and doesn’t have income from any benefits plot or different sources.
