Get the details about Senior Citizen Saving Scheme | Senior Citizen Saving Scheme Interest Rate 2022 | Eligibility | Account Opening | Nomination Facility | Amount | Documents List | Highlights, etc.
For the senior citizens of India, the central government of India release the senior citizen saving scheme. It is a post office savings scheme. Under his scheme the applicant will be given the interest rate of 7.4% from the month July 2022. All the candidates who want to get the benefit of this scheme released by central government scheme. Under this scheme, all the investments qualify for the tax benefit under 80C of the IT act. The maximum limit of senior citizen saving scheme account is 15 lakh rupees and the maturity period is 5 years.
Senior Citizen Saving Scheme Interest Rate
We can see from the Senior Citizen Saving Scheme interest rate chart that the SCSS scheme is at with other post offices schemes such as Kisan Vikas Patra, Post Office Savings Account, Public Provident Fund, National Saving Certificate, Time deposit Account, Sukanya Samriddhi Yojana, Monthly Income Scheme, RC account. Under this scheme the HUFs and NRIs cannot make the investments.
The current SCSS interest rate is 7.4% per annum which is decided by the central government of India. (From July 1st to September 30th 2022).
Post Office Interest Rate Table 2022
|Post office Savings Schemes||Interest Rate|
|Kisan Vikas Patra||6.9% compounded yearly|
|National Savings Certificate||6.8% compounded P.A., Payable at maturity|
|Sukanya samriddhi yojana||7.6% P.A. compounded annually|
|Senior citizen savings scheme||7.4% P.A. Payable from the deposit date of 31st march/31st December/30th September in the first instance and afterwards, interest have to pay on 31st march, 31st December, 30th June, and 30th September.|
|Public provident fund||7.1% compounded yearly|
|Post office monthly income scheme||6.6% per year payable monthly|
|Time deposit account||5.5% – 6/7% P.A. calculated quarterly|
|Post office recurring deposit account||5.8% P.A. compounded quarterly|
|Post office savings bank account||4% P.A.|
In the bank, the fixed deposit interest rate and SCSS interest rate are same. But the SCSS interest is paid quarterly and the Fixed deposit interest are is paid yearly. The tax on SCSS 2022 interest has to be paid according to the income tax slab rates. It is not tax free. People can take the advantage of tax benefit according to the 80C of IT Act. If the interest in FY is more than 50,000 rupees, then @10% TDS will be deducted.
Post Office Senior Citizen Saving Scheme Eligibility
Candidates can apply for the SCSS from any post office pan India. And benefits of SCSS can also be taken from the bank too. For the easy accessibility, the central government has given the permission to regarding opening the SCSS account in many nationalized banks such as Canara bank, HDFC, and SBI Bank. A person can open their account in cash if the amount if below 1 lakh rupees. if the amount is more than 1 lakh rupees then a person has to do the payment through cheque.
Eligibility to open the Senior Citizen Saving Account under this scheme
- A person of the age 60 year or above 60 years can apply for this scheme.
- A person who is retired from defense services (not civilian defense employees) and have 50 years of age can open an account under this scheme.
- A person who is retired on Voluntary retirement services/superannuation retirement service and have the age between 55 to 60 years can open their account under this scheme. But a person has to open their account in between the time of one month of receipt of retirement benefits. The also their investment amount should not be more than their retirement benefits.
Post Office Senior Citizen Scheme 2022 Required Documents
- At the bank or post office, firstly fill the application form.
- Know your customer KYC form.
- Aadhaar card
- Account number.
- Age proof.
- Address proof.
- Retirement benefits disbursal date.
- Applicant’s current photograph.
If a person is retired: – then a retirement related details certificate whether on VRS or superannuation is necessary.
Post Office Senior Citizen Savings Scheme Minimum and Maximum Amount
Under the Senior Citizen Saving Scheme Rules, 2004, only 1 deposit in SCSS account in multiples of 1000 rupees. the maximum to deposit is 15 lakh rupees and minimum account is 1000 rupees. an individual can make more than one accounts in post office but there will be only 1 deposit in one account. The maximum amount should not exceed the retirement benefit for 15 lakh rupees, of an individual.
Post Office Other Savings Schemes Investment, Lock in Period and Risk
|Investment||Min/Max Investment||Lock in Period||Risk|
|Recurring deposit||Min – Rs.10 per month max – no limit||5 years||No risk|
|Post office savings account||Min – Rs.50(non-cheque) and Rs.500 (cheque) Max – Rs.1 lakh||No lock in period||No risk|
|Kisan Vikas Patra||Min – Rs. 1000 Max – Rs. No limit||10 years 4 months||No risk|
|National saving certificate||Min – Rs. 100 Max – no limit||5 years||No risk|
|Senior citizens savings scheme||Min – Rs. 1000 Max – Rs. 15 lakhs||5 years||No risk|
|Sukanya samriddhi yojana||Min – Rs. 1000 Max – Rs. 1.5 lakh||Till 21 years||No risk|
|Time deposit amount||Min – Rs. 200 Max – no limit||1 to 5 years||No risk|
|ELSS funds||Min – Rs. 1000 Max – no limit||3 years (returns of 12 -15% expected)||Market related risk|
|Public provident fund||Min – Rs. 500 Max – Rs. 1.5 lakh||15 years||No risk|
|Post office monthly income scheme||Min – Rs. 1500 Max – Rs. 4.5 lakh||5 years||No risk|
Senior Citizen Saving Scheme Post Office Account Opening Eligibility
- A person who is of 60 or above 60 years of age.
- A person who is retired defense employees and have age between 50 years to 60 years. But a person has to open their account in between the time of one month of receipt of retirement benefits. The also their investment amount should not be more than their retirement benefits.
- A person who is retired civilian employees between 55 years to 60 years of age. But a person has to open their account in between the time of one month of receipt of retirement benefits. The also their investment amount should not be more than their retirement benefits.
- A person can open the account jointly with spouse or individually too.
Nomination Facility in SCSS 2022
A person can open the account individually or can also open jointly with their spouse. It is not necessary that the spouse of an applicant should also be senior citizen. If the spouse of the applicant is young and do not fall in the senior citizen criteria, even then an applicant can open their account under this scheme. After opening the account, an applicant can nominate an person of their choice by filling the Application Form C.
An applicant can open more than one accounts jointly as well as individually. But the maximum limit will be 15 lakh rupees even in joint account. The total amount in any the amounts of an individual should not exceed the 15 lakh rupees amount.
SCSS Interest Rate
- The interest should be paid quarterly from the date of deposit to march 31st/ June 30th/September 30th/December 31st.
- There will not be any additional interest on the deposited amount, if the interest is not payable to the account holder on time.
- If the total amount in the SCSS account is more than 50,000 rupees then it will be taxable (in the financial year). Form the total interest paid, the TDS at the prescribed rate will be deducted. If the form 15G/15H will be submitted then their will be no TDS deducted.
SCSS 2022 Deposit Details
- The minimum deposit amount should be 1000 rupees and maximum amount limit is 15 lakh rupees in SCSS individual as well as joint account.
- A person can take the benefit of section 80C of income tax act, 1961 under this scheme, as the tax is payable under this scheme.
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