Senior Citizen Saving Schemes Interest Rate 2023

Senior Citizen Saving Schemes Interest Rate

Senior Citizen Saving Scheme (SCSS) is a fixed-income investment scheme for people above the age of 60 years. The primary objective of this scheme is to help senior citizens ensure a regular flow of income after retirement. RBI has prescribed that the interest rates for senior citizen saving schemes should be reviewed every three months. The Senior Citizens Saving Scheme interest rate (SCSS interest rate) was revised in December for the fourth quarter of FY 2022-23. Currently, senior citizens can get 8% interest under the scheme.

Objective Of SCSS Interest Rate 2023

The objective of this scheme is to help senior citizens ensure a regular flow of income after retirement so they do not have to face financial problems in their old age.

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SCSS Interest Rate 2023

Important Points Of Senior Citizen Saving Schemes Interest Rate

• The age of applicant should be at least 60 years or more on the date of opening the account and they have to submit age proof to open the account.
• The deposit amount should be in multiples of one thousand rupees.
• The maturity period of this scheme is 5 years and after that, the depositor can extend the account for 3 years. The application for doing so should be made within a period of one year (after the date of maturity).
• Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) cannot open this type of account and cannot avail of the benefits of this scheme.
• The Senior Citizen Saving Schemes Interest Rate is 8% per annum and is calculated quarterly as per the instructions of the Reserve Bank of India.
• It is payable from the date of the first deposit i.e. 31st March/30th September/31st December and thereafter interest will be payable on 31st March, 30th June, 30th September, and 31st December (as per post offices).
• A joint account can be opened only with the spouse of the depositor. The first depositor in a joint account should be the primary investor.
• The age of the applicant can be 55 years or more but less than 60 years. You should have retired on pension or otherwise on the date of opening the account.
• Interest amounts can be withdrawn through auto credit in a savings account.
• If the depositor does not close or extend the account on maturity, his account will be deemed to have matured. Then the depositor will get the benefit of the interest rate applicable on deposits under the Post Office Savings Account (during the post-maturity period).
• Any retired personnel of Defense Services (except civil defense personnel) irrespective of the above age limit is eligible to open this account. But they have to fulfill other specified conditions.
• A single depositor has the freedom to maintain more than one account under this scheme. But with condition that the amount in all the accounts together should not exceed the limit of Rs. 15 lakhs.
• Withdrawal is not permitted before the maturity of the account.
• If the deposit amount is less than one lakh, it can be deposited in cash.
• The depositor can add one or more persons as nominees/nominees. This can be done at the time of account opening or any time after account opening.
• To pay by check or demand draft, then draw it in favor of the depositor, and it should be endorsed in favor of the depositor’s office.
• The depositor can premature closure of SCSS is allowed after one year in post offices. This is allowed as a deduction only of an amount that is equal to 1.5% of the deposit amount. And it is 1% of the deposit amount after two years.

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