Senior Citizens’ Savings Scheme 2019:The Ministry of Finance has notified Senior Citizens Savings Scheme 2019, replacing Senior Citizen Savings Scheme Rules 2004.
Senior Citizens’ Savings Scheme 2019:The Ministry of Finance has notified Senior Citizens Savings Scheme 2019, replacing Senior Citizen Savings Scheme Rules 2004. The notification of SCSS 2019 will not affect the operation of previous SCSS rules. The maximum deposit senior citizens can make in an SCSS account as per SCSS 2019 is Rs 15 lakh. The minimum deposit allowed in an SCSS account is Rs 1000. The account matures in five years. However, SCSS 2019 allows extension of the account for three more years after maturity. Here’s a look at what you may get by depositing Rs 15 lakh in SCSS account:
The current interest rate offered by the government on SCSS account is 8.6 per cent per annum. This is simple interest. The interest earned on the total deposit under SCSS account is credited to the account holder’s savings bank account on a quarterly basis.
Suppose you deposit Rs 15 lakh in SCSS account today, in five years it will approximately earn: Rs 15,00,000 x5x 8.6% = Rs 6,45,000. As the interest earned is paid to the account holder every quarter, you will approximately get Rs 6,45,000/20 = 32,250 per quarter in your savings account. You can get the principal amount back on maturity, or extend the account by another three years.
SCSS 2019 interest calculation: Key points
– The deposits in SCSS account should be restricted to retirement benefits, or Rs 15 lakh, whichever is lower.
– The account can be opened by a person who has attained the age of 60 years on the date of opening the account. Persons who have attained the age of 55 years or more but less than 60 years and retired can also open the account within one month of the receipt of the retirement benefits. The retirement benefits here means any payment due to the account holder on account of retirement on superannuation or otherwise, including PF dues, retirement gratuity, commuted value of pension etc.
– Interest payment: The interest will be payable from the date or deposit to 31st March/30th June/30th September/31st December on first working day of April/July/October/January, as the case may be, in the first instance. Thereafter, interest will be payable on the first working day of April/July/October/January as the case may be.
– If the interest payable every quarter is not claimed by the account holder, it will not earn any interest.
– If the account is extended after maturity, it will earn interest at the rate applicable to the Scheme on the date of maturity. If the account is not extended on maturity, the deposits will earn interest applicable to the Post Office Savings Account.
– The interest for any period less than a quarter (as specified in the scheme) will be calculated as: Number of days in the period x Interest for the quarter/Total number of days in the quarter
– The interest can be claimed on the due date, or on any date after the due date.