Those who haven’t already made plenty of savings for their retirement often look for avenues to save whatever money they have left. For such people, there’s something called the Senior Citizen Savings Scheme (SCSS) introduced by Post Office Savings Scheme, which offer good returns without any risk factor. But, do you know anything about this scheme and how you can open it? Well, that’s what we will let you know here in the form of a Q&A.
- What is the eligibility criteria to invest in an SCSS?
SCSS has a few eligibility requirement an applicant has to meet. To begin with, he/she must be at least 60 years of age and 55 years of age in case they have retired on a Voluntary Retirement Scheme (VRS). Also, to open the account, a person must pay Rs.1 lakh and less in cash or, in the case of money worth more than Rs.1 lakh, should use cheque to deposit the money.
- How many accounts can be opened under SCSS?
Provisions provided under SCSS suggest that any number of accounts can be opened in a person’s name. However, there’s a limit to the investment he/she makes and this limit stands at Rs.15 lakh.
- What is the Rate of Interest available for an SCSS account?
At present, rate of interest on an SCSS account is 8.5%, which will be credit on a quarterly basis. To get the interest auto-credited, an individual will need to open a separate savings account with the post office.
- Is there a nomination facility available under this scheme?
Yes, SCSS comes with a nomination facility which can either be availed when opening the account or after the account is opened.
- What is the tenure for SCSS?
Typically SCSS comes with a maturity period of 5 years, which can be extended for three years within the last year of the term by providing the right application form.
- What are the documents required to open an SCSS account?
Opening an SCSS account requires a number of documents from the applicant’s side. These documents include:
- PAN number
- KYC PAN form
- Address proof
- Age proof
Documents required for retirees are different. These include:
- Certificate from employer with relieving date
- Proof of benefits
- Job designation
- Duration of employment proof
- Are there any tax benefits available under SCSS?
Yes. Tax benefits for SCSS are available up to the tune of Rs.1.5 lakhs based on Section 80C of the Income Tax Act.
To sum it up, Senior Citizen Savings Scheme (SCSS) is one of the best and the most risk-free investment options available for retired individuals. People who are wary about investing in mutual funds can go ahead and open an SCSS account to secure their future.