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Senior Citizens Savings Scheme 2004

(updated as on Apr 2012)

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Salient Features of the Scheme
 
      

Tenure of the Scheme

5 years, which can be extended by 3 more years

Rate of interest

9.3% (simple interest)

Frequency of Computing interest

Quarterly

Tax aspects

Interest is fully taxable

Investment to be in multiples of

Rs.1000/-

Maximum investment limit

Rs.15 lakhs

Minimum eligible age

60 years (55 years for those who have retired under a voluntary or a special voluntary scheme provided investment is made within 1 month of date of receipt of retirement benefits for retired personnel of Defence Services (excluding Civilian Defence Employees) - no age limit.

Facility of premature withdrawals

Available after 1 year of holding but with penalty

Transferability feature

Not available

Tradability

Not available

Nomination Facility

Available

Mode of Holding

Generally single, Joint mode is permitted but only spouses will be allowed to open accounts jointly with beneficiaries.

 


Who can apply

The scheme is available for citizens above 60 years of age; however a provision has been put in place for individuals who have crossed 55 years of age. Such individuals may invest subject to the conditions that,
  • The person has retired under a voluntary retirement scheme or a special voluntary retirement scheme on the date of making the investment,

  • The investment is made within three months of the date of retirement,

  • And a certificate from the employer, indicating the fact of retirement, retirement benefits, along with period of such employment with the employer, is attached with the application form.

Non-Resident Indians and Hindu Undivided Families are not permitted to invest in the scheme.

Investment Limits
Investments can be made in any post-office by opening an account. Only one deposit can be made in each account; the deposit amount shall be a multiple of Rs 1,000 and should not exceed Rs 1,500,000.


A depositor can operate more than one account subject to the condition that all the deposits taken together don't exceed the specified amount i.e. Rs 1,500,000. Also more than one account shall not be opened in the same post-office during a calendar month.

 

  • Interest rate
    The scheme will offer an interest of 9.3 per cent per annum. The same will be payable on 31st March, 30th June, 30th September and 31st December each year.

     

  • Mode of holding
    The depositor can hold an account either individually or jointly with his/ her spouse.


  • Nomination
    Nomination facility has been provided under the scheme. In the event of death of the depositor, the amount due shall be paid to the nominee. Nomination facility is also available incase of joint accounts.

     

  • Maturity
    The scheme has a tenure of 5 years. The account can be extended for a 3 year period by making an application.

     

  • Withdrawals
    Investors will be permitted to prematurely liquidate their investments at any time after the expiry of 1 year from the date of opening of the account subject to the following conditions,
    • In case the account is closed after the expiry of 1 year but before the expiry of 2 years from the date of opening of the account, an amount equal to 1.5% of the deposit shall be deducted.

    • In case the account is closed on or after the expiry of 2 years from the date of opening of the account, an amount equal to 1% of the deposit shall be deducted.


  • Tax benefits
    The interest income from the scheme is fully taxable.
  • Transfer of Account
    The account can be transferred from one post-office to another.

 

 

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