New Delhi: Post office savings schemes offer one of the best interest rates on all its nine small savings schemes. Out of the nine small savings schemes of India Post, Senior Citizen Savings scheme offer the maximum interest at 8.3 per cent per annum. The Senior Citizen Savings scheme as the name suggests help people above 60 years to earn a higher interest rate on their savings. Here is all you need to know about Senior Citizen Savings scheme.
Senior Citizen Savings Scheme
1) Who can deposit: Individuals above 60 years can open this account. Also, an individual of the age of 55 years or more but less than 60 years, who has 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.
2) Maturity: Maturity period of this scheme is 5 years. After maturity, the account can be extended for further three years by giving an application in prescribed format within one year of the maturity. In such cases, the account can be closed at any time after expiry of one year of extension without any deduction, India Post said on its website.
3) Maximum deposit amount: The maximum amount that can be deposited in this scheme is Rs 15 lakh. An individual can open more than one account in his name or jointly along with his/her spouse in any post office subject to the maximum investment limit of Rs 15 lakh by adding balance in all accounts. Deposits should be in multiples of thousands.
4) Interest payable, Rates, Periodicity: An interest rate of 8.3 per cent per annum will be payable on the deposit on a quarterly basis on the first working day of April, July, October and January. The interest amount can be drawn through auto credit into savings account standing at same post office, through post-dated cheques or through money order.
5) Premature closure: It is allowed after one year of deposit on deduction of an amount equal to 1.5 per cent of the deposit. If you do it after 2 years, 1 per cent of the deposit will be deducted as charges.