Senior citizen savings scheme account can be opened by Senior Citizens of India for the purpose of long-term investment. The Maturity period of such an account is 5 years.
- A senior citizen savings scheme account can be opened by any individual above the age of 60.
- Individuals between the age of 55 years to 60 years who have retired under Voluntary Service Retirement or superannuation can open a senior citizen saving account subject to following conditions
- The account needs to be opened within one month from the date of receipt of the retirement benefits.
- The amount thus deposited should be less than or equal to the amount received under retirement benefits.
- Defense personal attaining retirement at the age of 50 and above can open the account subject to the fulfillment of certain other conditions.
Documents Required to open Senior Citizen Savings Scheme Account in a post office.
- Account Opening Form
- Passport size photograph
- Cash up to the maximum limit of Rs. 1 Lakhs or a cheque of the maximum amount of Rs. 15 Lakhs.
- Identification proof
- Address proof
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.