Post Office Senior Citizen Savings Scheme is a good investment opportunity for building a retirement fund. It offers an initial investment period of five years.
Under the Post Office Senior Citizen Savings Scheme (SCSS), foreign citizens do not have the option to invest in it. This scheme has a maturity period of 5 years, and account holders can choose to extend it for an additional 3 years by submitting an application and following other procedures.
Maturity
Account holders can conveniently extend the duration of the scheme by submitting an application a year before the maturity date. Additionally, investments of less than Rs 1 lakh can be directly deposited in the account, while amounts exceeding Rs 1 lakh must be deposited with a cheque. The investors have the option to choose a nominee for their account.
Single and joint accounts
Multiple accounts can be opened under the Senior Citizen Savings Scheme (SCSS). An individual can open either a single or joint account. However, joint accounts are limited to spouses only. In a joint account, the investor is considered the first depositor. These accounts can also be transferred from a post office to a bank or vice versa.
To close a Senior Citizen Savings Scheme (SCSS) account before the maturity date, follow these steps:
• Submit an application in Form 2 for premature closure.
• If the account is closed before 1 year, the interest earned on the deposited amount will be deducted from the principal.
• If the account is closed before 2 years, a penalty of 1.5% will be imposed.
• If the account is closed after 2 years, a penalty of 1% of the investment amount may be deducted.
Last Updated Apr 21, 2024, 1:40 PM IST