Monday, 5 March 2018

The Senior Citizens’ Saving Scheme

The Senior Citizens’ Saving Scheme is a savings product available to only senior citizens of age 60 years or above on the date of opening the account. Proof of age and a photograph of account holder are required. The age limit is reduced to 55 years in case of an individual retiring on superannuation or otherwise, or under VRS or special VRS, provided the account is opened within one month of date of receipt of retirement benefits.

The retired personnel of Defence Services, excluding Civilian Defence Employees, shall be eligible irrespective of age limit. The account can be opened at any post office undertaking savings bank work and a branch of a bank authorized to do so. The scheme can be held in individual capacity or jointly with the spouse. The age restrictions apply only to the first holder. NRIs, PIOs and HUF are not eligible to invest in this scheme and neither can they take intraday tips for the same.

The term for the scheme is 5 years. A one-time extension of three years is allowed, if applied within one year of its maturity. Maximum limit of investment is Rs.15 lakhs. However, in case of retirees before the age of 60 years the limit is restricted to retirement benefits or Rs.15 Lakhs, whichever is less. An investor can open more than one account subject to the condition, that amount in all accounts taken together does not at any point of time exceed Rs.15 Lakhs.  The deposit can be made in cash if the amount is less than Rs. 1 lakh, or cheques or demand draft.

To know more about the beneficiary schemes laid down by the government of India, avail the MCX commodity tips at 24 Carat Financial Services.

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