All the citizens of the country have the right to access all the benefits given by the government. In a democracy, everybody has to get equal treatment and fight for their rights if denied. Right from children to senior citizens, the government has provided many schemes and acts for individuals belonging to specific age groups. It has ensured to reach out to every sector of society and give them fair benefits.
The Senior Citizen Saving Scheme is a savings instrument sponsored by the government of India for individuals above 60 years of age. Introduced in 2004, it aims to provide all senior citizens with a steady and secure source of income which they can use after their retirement. It is also one of the most lucrative savings schemes in India, which offers substantial returns to its subscribers. The rate of interest is 7.4 per cent for the period of April to June 2020. Since the scheme is an initiative of the government, the risk of the capital loss is negligible. Individuals can apply for this scheme through post offices as well as public and private banks.
Features of the scheme
SCSS aims at providing all older people with a steady and secure source of income despite their financial condition. They have worked all their life to support their families and deserve some respect and support in their old age. The following are the features of the scheme:
Quarterly revision of interest rates:
The interest rate offered undergoes revision every three months, depending on various factors such as inflation, prevailing market rates, etc. Because of stagnant or unchanged economic conditions, the rates of interest will remain the same throughout the quarter even after revision.
Fixed income:
The interest rate set at the time of investment is fixed throughout the maturity tenure and does not change even after alterations in the later quarter.
Minimum and maximum deposit amount:
Eligible individuals must deposit a minimum amount of INR 1,000 to open an account under this scheme. They can deposit up to a maximum of INR 15,00,000 or the amount they receive as a retirement benefit, whichever is lower. This clause applies to all accounts, irrespective of whether it is an individual or a joint one. An individual can open a joint account only with the spouse.
The maturity tenure:
The maturity period for the SCSS scheme is five years with the liberty to extend it for another three years, adding up the period to eight years. Those willing to extend the scheme shall submit Form B after duly filling it. An extension is allowed only once. The interest rates applicable at that quarter would apply.
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