SENIOR CITIZENS SAVINGS SCHEME

Senior Citizen Saving Scheme

Senior Citizen Saving Scheme

Any depositor may open an account at any deposit office by making an application in Form A along with the amount of deposit in multiple of one thousand rupees, along with age proof.

A depositor may operate more than one account subject to the condition that deposits in all accounts taken together shall not exceed the maximum limit of Rs.15 lakhs and provided that deposits by depositors shall be restricted to the retirement benefits or Rupees Fifteen lakhs whichever is lower.

A depositor may open the account in individual capacity or jointly with spouse.

Eligibility:

Eligibility:

  • An individual who has attained the age of 60 years and above on the date of opening of an account.

  • who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account.

  • who has retired at any time before the commencement of these rules and attained the age of 55 years or more on the date of opening of an account,

  • The retired personnel of Defence Services (excluding civilian Defence employees) irrespective of the above age limits subject to fulfilment of other specified conditions.

NRI

NRI

NRI's are not eligible to open an account under these rules.

HUF

HUF

Hindu Undivided Family is also not eligible to open an account under these rules.

Deposits and withdrawals:

Deposits and withdrawals:

There shall be only one deposit in the account in multiple of one thousand rupees not exceeding Rupees Fifteen lakhs.

Permitted after one year of opening the account but with penalty.

Mode of Deposit:

Mode of Deposit:

The deposit under these rules may be made:

  • cash, if the amount of deposit is less than Rupees One lakh.

  • By cheque or demand draft drawn in favour of the depositor and endorsed in favour of the deposit office.

Renewal:

Renewal:

The depositor may extend the account for a further period of three years after the maturity period of five years. An application in Form B should be made within a period of one year after the date of maturity period.

Interest on Deposit:

Interest on Deposit:

The deposit made under these rules shall bear interest @ 8.60% p.a. from the date of deposit payable at the end of each calendar quarter e.g. 31st March / 30th June / 30th September / 31st December. Compounding of interest not permissible.

Nomination:

Nomination:

The depositor may nominate a person or more than one person, at the time of opening of the account or at any time after the opening of the account but before its closure, by an application on Form C accompanied by the passbook to the Branch.

Nomination made by the depositor can be cancelled or varied.

Closure of Account:

Maturity

The deposit made at the time of opening of account shall be paid by the concerned deposit office after the expiry of five years from the date of opening of the account on production of the passbook accompanied by a written application (withdrawal form) Form E .

In case a depositor does not close the account on maturity and also does not extend the account, the account will be treated as matured and the depositor will be entitled to close the account at any time subject to the condition that the post maturity interest at the rate as applicable to the deposits under the Post office Savings Accounts from time to time will be payable on such matured deposits upto the end of the month preceding the month of the closure of the account.

Death of the depositor

Death of the depositor

In case of death of the depositor before maturity the account shall be closed and deposit refunded on application in Form F along with interest to the nominee or legal heirs in case the nominee has also expired or nomination was not made as per rules.

If the total amount including interest payable is upto Rupees one lakh it may be paid to the legal heirs on production of (i) letter of indemnity (ii) an affidavit (iii) a letter of disclaimer on affidavit (iv) a certificate of death of the depositor on stamped paper in the form as in Annexure to Form F.

Premature closure of Account

Premature closure of Account

On an application in Form E the depositor may be permitted to withdraw the deposit and close the account at any time after the expiry of one year from the date of opening of the account subject to the following conditions:-

  • In case the account is closed after the expiry of one year but before the expiry of two years from the date of opening of the account, an amount equal to one and half percent of the deposit shall be deducted and the balance paid to the depositor.

  • In case the account is closed on or after the expiry of two years from the date of opening of the account, an amount equal to one percent of the deposit shall be deducted and balance paid to the depositor.