Senior citizen saving scheme: Investment plans for retirement in an important decision to taken wisely. After retirement people get money which generally they want to invest somewhere so that they could get continuous benefit from it. Before investment, we generally have various questions in mind, is it reliable? , how much we will get in return? , can we trust the firm? Etc.
Senior citizen saving scheme is a single answer to the questions one have for investment after retirement. It is under Post Office saving scheme so no doubt it is trustworthy, it has higher interest rate, risk factor is minimum and options for income tax saving. All these things make this scheme the most popular investment schemes for the retired personnel.
Generally, people go for the fixed deposits with different banks after their retirement as it offer them a secure return with some interest. Senior citizen saving scheme is launched by the governments for the welfare of the retired citizens of the country so, one should check it before investing somewhere else.
After a lifelong period of job and responsibilities old is finally the time when we seek for peace and some time to relax. A wrong decision can ruin the lifetime work and saving you made throughout your life. Before going for any other investment in hurry you should check out this scheme with the post office.
Here are some of the details of senior citizen saving scheme, which you might be looking for.
- Eligibility criteria for opening the account under senior citizen saving scheme.
Any person with age 6oyrs or above can open the account, also those who are retired under voluntary retirement scheme at the age between 55 to 60yrs. People with retirement on superannuation can also get benefited. For opening the account with amount up to Rs 1lakh you can directly deposit cash but on the amount exceeding 1lakh applicant will have to deposit a cheque of the amount.
- Account deposition Limit
Beneficiary can deposit total amount up to Rs 15lakhs in multiple installments.
- Maximum numbers of account under single beneficiary’s name
There is no conditions on the maximum numbers of account one can open under this scheme. Beneficiary can open one or more account individually or joint account with spouse. The total sum of balances in all the accounts should not exceed 15lakhs.
- Nomination details
Nominee of the account can be declared at the time of opening of the account or after the opening of the account.
- Interest rate of the account
The interest rate on the account opened under senior citizen saving scheme is 8.5% per annum and the interest amount will be credited after every 3 months in the account. For auto credit facility of the interest amount a separate saving account under Post office is required.
The maturity period for the saving account is 5yrs but beneficiary can extend the account for three or five years by submitting an application in the provided format.
- Premature closure
The option for premature closure is available only after a time period of one year with deduction of 1.5% of the deposited amount. Premature closure after a period of two years will lead to deduction of 1% of the balance amount.
- Account transfer
A beneficiary can transfer his/her account from one Post office to another in any part of the country by submitting an application for the same.
- Documents required
Beneficiary needs to submit KYC (Know Your Customer) form along with photographs, permanent account number and age proof. For retirees a certificate stating the date of retirement, designation and duration of employment is necessary for the account.
- Tax saving benefits
Investment by the beneficiary under this scheme will get tax benefits entitled under section 80C of taxation.
For any further details or to open account under the scheme visit the nearest post office or for details visit the official website.