Retirement brings several complications and doubts with itself, but there are several savings schemes offered by the government i.e. Senior Citizens Savings Scheme that are safe and ensure guaranteed retirement income. Now you need not need to worry-for the future as your future is now in the safe hands.
The Senior Citizen Savings Scheme (SCSS), launched initially in 2004 is a deposit scheme introduced by the government of India to provide guaranteed returns to senior citizens through a safe investment and guaranteed insured future old-age. This scheme ensures a regular income stream for senior citizens in and after the age of retirement.
THE ELIGIBILITY CRITERIA – SCSS scheme has no large eligibility criteria to opt for this benefit. You only need to be a retired resident of India for getting the benefits of this scheme.
Open a savings bank account in any of the Government Bank of India along with SCSS Account and you will need the following documents to be submitted at Branch Counter.
Account Opening Form which the bank will be providing.
Two Passport Size Photographs will be required in the completion of the form.
Address and Identity proof. (In case you fall short of these, then other alternatives can be PAN (permanent account number) card or declaration in form No 60 or 61 as per the Income Tax Act 1961, driving license, voter`s identity card or ration card).
Aadhar Card will be mandatory at the time of opening the account.
Original Identity Proof at the time of verification.
60 years of age from the original Date of Birth.
55 years for those who have retired on superannuation or under a voluntary or special voluntary scheme.
The retired reputed personnel of Defence Services (excluding Civilian Defence Employees) will be excessively eligible to invest on attaining the age of 50 years subject to the fulfillment of specified conditions, briefly announced at the time of opening the account under this Senior Citizens Savings Scheme.
INVESTMENTS REQUIRED UNDER THE SCSS-
Minimum: Rs 1,000 will be required under the scheme to be deposited while opening the account and a maximum of Rs.15 Lakh can be deposited within the same criteria.
Deposits have to be in multiples of Rs 1,000 while depositing in the SCSS scheme account.
Interest is applicable on your amount deposited under Senior Citizens Savings Scheme from time to time as per Govt. of India guidelines-transferred directly into the beneficiary account.
Interest shall be payable from the date of deposit to 31st March, 30th June, 30th September, 31stDecember till 1st working day of April, July, October, January whatsoever the case may be, which so ever may be, interest shall be payable on 1st working day of April, July, October, January.
The time period for tenure of Senior Citizens Savings Scheme will be 5 years which can be extended for the next 3 years.
Under SCSS scheme, the beneficiary can opt for opening the account as an individual or in joint facility available with the spouse.
The SCS scheme benefits will remain constant in either cases and the rewards will be divided as per the primary account holder in case of joint account.
Nomination facility is also available with the SCSS scheme.
Interest earned on the deposit is fully taxable and tax is deducted as TDS as per updated applicable Income Tax Rules.