BackCan a 58-year-old retiree from a private firm open Senior Citizen Savings Scheme?
Senior Citizen Savings Scheme can be opened by an individual above 60 years of ageBut there are relaxations in specific cases
PremiumRecently, a post office savings bank account customer, who was formerly employed with a pharma company sought for a clarification from the Department of Post on whether he being a retired from a private company and 58 years of age is eligible to open Senior Citizen Savings Scheme account.
Here is the what the Postal Department has clarified:
"Rule 3 (ii) of Senior Citizen Savings Scheme 2019 specifies, an individual who has attained the age of 55 years or more but less than sixty years, and who has retired on superannuation or otherwise on the date of opening of an account under this scheme is eligible to open the account, subject to the condition that the account is opened by such individual within one month of the date of receipt of the retirement benefits and proof of date of disbursal of such retirement benefit(s) along with a certificate from the employer indicating the details of retirement on superannuation or otherwise, retirement benefits, employment held and period of such employment with the employer, is attached with the application form".
"The rule doesn't specify category of employer. Any customer fulfilling the conditions laid out in the Scheme is allowed to open SCSS account in the post office of his choice."
Here are some features of Senior Citizen Savings Scheme:
1) Senior Citizen Savings Scheme can be opened by an individual above 60 years of age.
2) Retired civilian employees above 55 years of age and below 60 years of age, subject to condition that investment to be made within 1 month of receipt of retirement benefits can also open Senior Citizen Savings Scheme.
3) Retired defense employees above 50 years of age and below 60 years of age, subject to condition that investment to be made within 1 month of receipt of retirement benefits are also eligible to open Senior Citizen Savings Scheme
4) Account can be opened as individual capacity or jointly with spouse only.
5) Minimum deposit shall be Rs. 1000 and in multiple of 1000, subject to maximum limit up to Rs. 15 lakh in all SCSS accounts opened by an individual.
6) Interest under the scheme is payable on quarterly basis and applicable from the date of deposit to 31st March/30th June/30th September/31st December.
7) If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.
8) Account can be prematurely closed any time after date of opening. If account closed before 1 year, no interest will be payable and if any interest paid in account shall be recovered from principle. If account closed after 1 year but before 2 year from the date of opening, an amount equal to 1.5 % will be deducted from principal amount. If account closed after 2 year but before 5 year from the date of opening, an amount equal to 1 % will be deducted from principal amount.
9) In case of death of account holder, from the date of death, account shall earn interest at the rate of postal savings account.
10) Senior Citizen Savings Scheme currently offers interest of 7.4 % per annum.
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