Savings scheme

How to open a Seniors Savings account: all you need to know

The senior savings plan was set up in 2004 with the aim of offering seniors a stable and secure source of income for their post-retirement.

How to open a Seniors Savings account

The Seniors Savings Plan (SCSS) is a government-funded savings plan for people over 60. The SCSS is a government-backed plan. Payment to the Seniors Savings Plan expires 5 years from the date of opening the account but can be extended once for another 3 years.

The SCSS was introduced in 2004 with the aim of providing older people with a stable and secure source of income for their post-retirement. The risk of capital loss in SCSS is negligible.

The terms and conditions applicable to SCSS are the same regardless of which bank / post office you invest through. The SCSS interest rate from April to June 2020 will be provided at 7.4%.

Here is how to open the Seniors Savings account:

Individuals can apply for the SCSS through post offices as well as public and private banks. The account conditions remain the same. An account can be transferred from one post office to another.

Documents required to open an SCSS account:

  • Form A must be completed to open an SCSS account.
  • Proof of identity such as PAN card, passport.
  • The Aadhar card is compulsory.
  • Proof of address such as phone bill.
  • Proof of age is required.
  • 2 passport size photographs.

Duration of SCSS:

The duration of this regime is 5 years with the possibility of extending it by 3 years. In order to extend the plan for 3 years after the end of the 5-year term, you must apply by completing Form B within one year of the expiration date.

Premature withdrawals are allowed but only after one year of opening an account. In the event of the death of the depositor, no fees or penalties are levied for the premature closure of the account.

Eligibility:

The system is open to any resident natural person aged 60 and over. In addition, people over the age of 55 but under the age of 60 are also eligible for the retirement savings scheme provided they have retired under the applicable pension rules or VRS. In such cases, the account must be opened within one month of receipt of the pension benefits.

The amount needed to open the SCSS account:

The minimum deposit allowed in a SCSS account is Rs 1000. The maximum deposit allowed in a SCSS account is Rs 15 lakh.

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