Cash up to the maximum limit of Rs. 1 Lakhs or a cheque of the maximum amount of Rs. 15 Lakhs.
Features of the Senior Citizen Saving Schemes Account
Only a single one time deposit is made to the account with the maximum limit of Rs. 15 Lakhs. The amount deposited should be multiples of Rs. 1000/-.
Each depositor can operate more than one account singularly or jointly with a spouse.
A joint account can be opened with a spouse only.
The investor shall be the first depositor in the case of a Joint account
The maturity period is 5 years from the date of opening the account. Upon maturity, the account holder can extend the account for another 3 years by applying in the prescribed format in which case the investor can close the account after expiry of 1 year of such extension
The depositor can open the account by payment of cash amount (not exceeding Rs. 1 Lakhs) or a cheque. For the amount above 1 Lakhs, the only cheque is accepted.
The date of opening of the account shall be the date of realization of cheque
The account holder can open any number of accounts. The maximum amount of investment allowed in total for all accounts is Rs. 15 Lakhs.
The investor gets tax benefit under Section 80C of the Income Tax Act, 1961 from 1.4.2007.
The interest is payable at 8.6 % per annum from the date of deposit of 31st March/30th Sept/31st December & thereafter, interest is payable on 31st March, 30th June, 30th Sept and 31st December.
Quarterly interest is payable across all post office on the 1st working day of the month April, July, October & January.
The interest of the account at any Post offices can be credited in any savings account of the account holder in any other CBS post offices.
If the interest amount exceeds Rs. 50,000/- per annum, TDS shall be deducted at source on interest.
The investor can transfer the account to another post office.
The investor can assign a nominee at the time of opening the account or before maturity,
Closure of Account.
The account is closed after completion of the maturity period of 5 years. This duration can be extended for a further 3 years by giving application in a prescribed format.
The account holder can close the account prematurely under the following conditions:
no interest shall be paid in case the account is closed within 1 year of opening the account. In case the interest is paid, the same shall be recovered and deducted from the principal account and the balance shall be refunded.
For premature closure requests raised after completion of the first year, 1.5% of the amount deposited shall be deducted.
If the account is closed prematurely after completion of 2 years, 1% of the deposited amount shall be deducted.
In case of death, the account can be closed by the legal heir upon submitting the prescribed documentation.