Post Office Senior Citizen Savings Scheme offers 8.7% interest, Income Tax benefits; Details here

Post Office Senior Citizen Savings Scheme (SCSS) is offering 8.7% interest on investments. The scheme is applicable only for senior citizens who also enjoy tax benefits by investing in SCSS. According to the official India Post website, the interest of 8.7% is payable from the date of deposit of 31st March/30th Sept/31st December in the first instance and thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December. A senior citizen can make only one deposit in the account in multiple of Rs 1000. The maximum deposit should not exceed Rs 15 lakh.

Post Office SCSS features: 

- Who can open the account: An individual of the age of 60 years or more may open SCSS account. An individual of the age of 55 years or more but less than 60 years who have retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and the amount should not exceed the amount of retirement benefits.

- Maturity period: Five years.

- Multiple accounts: A depositor can operate more than one account in an individual capacity or jointly with the spouse (husband/wife). 

- How to open the account: Account can be opened by cash for the amount below Rs 1 lakh and for Rs 1 Lakh and above by cheque only. In case of cheque, the date of realization of cheque in government account shall be the date of opening of the account.

- Nomination facility: Available at the time of opening and also after the opening of the account.

-Account transfer: Account can be transferred from one post office to another. 

-Number of accounts: Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts. Joint account can be opened with spouse only and first depositor in the joint account is the investor.

- Premature closure: Allowed after one year on deduction of an amount equal to 1.5% of the deposit and after two years 1% of the deposit. After maturity, the account can be extended for further three years within one year of the maturity by giving an application in prescribed format. In such cases, the account can be closed at any time after the expiry of one year of extension without any deduction.

- Tax benefit: Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961.