Ten Frequently Asked Questions About Senior Citizen Savings Scheme 2004.

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    First thing one should distinguish that for Senior Citizen Saving Scheme , you are Senior Citizen if your age 65 or more.

    Question1 : Who is eligible for opening this account?
    Answer 1: Following class of persons can join the scheme

    1. Any resident Indian citizen having 60 years age can open this account.
    2. Any resident Indian citizen who took premature retirement on voluntary retirement or special scheme or on superannuation can open this account just after attaining 55 years.
    3. Any non civil defence personnel without any age restriction can open this account.

    Question 2 : What is the frequency of interest calculation and rate?
    Answer : Interest rate is 9 % computed quarterly.

    Question 3: What is the maximum amount of investment permissible?
    Answer 3 : Maxmum Rs 15 Lakh can be invested.

    Question 4: What is the tenure of this account?
    Answer 4: The account is locked for 5 years and can be extended for 3 years.

    Question 5: Is premature withdrawl possible ?
    Answer 5: Yes after one year only , but there is penalty.

    Question 6: Can this account be transferred to other’s name or sold?
    Answer 6: Neither transfer nor trade of account is possible. Only nomination can be done.

    Question 7: Where can this account be opened and where is the form available?
    Answer 7 : The account can be opened in any post office or nationalised banks. Application forms are vailable with them.

    Question 8 : Can it be opened in Joint Name ?
    Answer 8: Yes, it can be opened in single or joint name.

    Question 9: Is the interest paid is taxable?
    Answer 9: Yes, the interest is taxable and tax shall also be deducted at source if interest in a year exceeds Rs5000 (Rs 10,000 in case of Sr. Citizen) . However , 15 G or 15H (in case you are 65 years
    old) if submitted , can save you from TDS.

    Question 10 : Can this account be transferred from one deposit office to another?
    Answer 10: Yes, it can be transferred from one bank to another bank or post office to another post office.

    Relevant Readings

    What Are The Tax Benefits Available To Senior Citizens?

    Turned 65 on 31st March,You are Senior Citizen Even Then!

    2 COMMENTS

    1. I am holding a senior citizen savings scheme account in SBI Ranchi. Subsequent to my retirement from service I have settled in Manipal, Udupi District Karnataka. I have now applied for transfer of my SCSS account from the Ranchi branch to Udupi branch. SBI oficials inform me that transfer is not done by RTGS but by the home branch sending a DD to the transferee branch. Kindly ley me know whether the transfer will be seamless or I will lose interest during the transfer period of 7-10 days when my account in the home branch is closed and the DD is in transit to the Udupi branch.

    2. one of relatives who had deposited rs 5.50 lakhs in senior citizen savings scheme in state bank of india, expired in feb 2010. the maturity date of the deposit was3rd april 2010 . the payment was made to nominy i12th march 2011. but only principle amount was paid . whether nominy is eligible for interest from aprol 2010 to march 2011? generally all banks pay interest on deceased accounts. are the rules for scss are different?