Latest news with #SeniorCitizenSavingsScheme
News18
4 days ago
- Business
- News18
SCSS Explained: 8.2% Interest, Tax Savings, And Guaranteed Income For Senior Citizens
SCSS not only provides safety but also offers a regular income to retirees. Senior citizens often look for safe and steady income options. At a time when fixed deposit rates are fluctuating and many investment options offer lower returns, one scheme stands strong – the Senior Citizen Savings Scheme (SCSS). SCSS not only provides safety but also offers a regular income to retirees. It gives an impressive 8.2 per cent per annum interest. Senior citizens can also get a tax benefit under Section 80C up to Rs 1.5 lakh. What is SCSS? The Senior Citizen Savings Scheme is a government-backed savings plan designed specifically for people aged 60 years and above. The scheme is available at post offices and authorised banks. The interest rate is paid every quarter. The minimum amount you need to deposit is Rs 1,000, and the maximum is Rs 30 lakh. When the total amount is less than Rs 1 lakh, an individual may deposit the money in cash. When the deposit exceeds Rs 1 lakh, the person should pay using a cheque. Repayment Tenure The repayment tenure for SCSS is 5 years. But if you want to close it prematurely, you can do so by filling Form 2. But you cannot withdraw multiple times; only one-time full withdrawal is allowed. If you want to close the account before 1 year, then you will have to return all the interest you earned. And if you close the account after 1 year but before two years, then a penalty of 1.5 per cent will be imposed on your deposit amount. If you are willing to close the account after 2 years, then a penalty of 1 per cent will be deducted from your deposit. How to open SCSS account? Go to any post office or authorised bank branch. Fill Form A, which is the SCSS account opening form. Enter personal details such as name, date of birth, address, deposit amount and nominee details. Submit the required documents such as Aadhaar Card, PAN card, passport, passport size photo and retirement proof. Deposit the amount in cash if the amount is less than Rs 1 lakh or by cheque or demand draft for above Rs 1 lakh. Once the verification is done, the account will be opened. You will get a passbook or account confirmation. You can also open a joint account with your spouse but the primary account holder must be a senior citizen. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
5 days ago
- Business
- News18
PPF, Sukanya Accounts May Be Frozen After Maturity. Check What You Must Do In Time
Last Updated: Accounts that are not extended for reinvestment or closed within three years of maturity will be frozen, as per the advisory, restricting any further access or transactions The Postal Department has issued an important advisory for investors in popular small savings schemes like the Sukanya Samriddhi Yojana, Public Provident Fund (PPF), National Savings Scheme, and the Senior Citizen Savings Scheme. The department has warned that discrepancies or errors in managing these accounts could lead to them being frozen, restricting all withdrawals and transactions until the issues are resolved. The advisory highlights that accounts which have not been extended for reinvestment or closed within three years of maturity will be at risk. If three years have passed since the maturity date and no action has been taken, the department will freeze these accounts. Consequently, account holders will be unable to access their funds. This measure is designed to protect accounts from fraudulent activities. The Postal Department states that inactive accounts are vulnerable to scams, and freezing them is a preventive step to safeguard investors' money from illegal withdrawals. The department stated that this process will now be carried out twice a year to safeguard investors' hard-earned money. Investors in small savings schemes should note that within three years of maturity, they must either withdraw the funds or reinvest them to avoid complications. The accounts under scrutiny include PPF, Sukanya Yojana, NSC, RD, fixed deposits, monthly income schemes, Kisan Vikas Patra, and the Senior Citizen Savings Scheme. Once frozen, these accounts will be inaccessible for any transactions, including online transfers. How Can The Account Be Reactivated? For reactivating a frozen account, the Postal Department has provided a clear procedure. Account holders must visit the postal office and submit their account passbook, KYC documents, and account closure form SB 7A. The account will then be closed, and the remaining balance will be handed over to the account holder. Account freezing will be carried out twice a year, on January 1 and July 1, as per the new schedule. The entire freezing process will be completed within 15 days. view comments First Published: July 18, 2025, 16:21 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
5 days ago
- Business
- Business Standard
Post offices to freeze inactive accounts: Here's what customers must do
The postal department has begun a twice-yearly drive to freeze small savings accounts inactive for more than three years after maturity, aiming to protect depositors' funds and prevent unauthorised access. As a new practice, post offices will identify such accounts every January and July. If your account has matured but you haven't withdrawn the funds or extended the tenure within three years, it risks being frozen. Which accounts are impacted? The rule applies to all major small savings schemes, including: Time Deposits Monthly Income Scheme Public Provident Fund Senior Citizen Savings Scheme Kisan Vikas Patra National Savings Certificates Recurring Deposit Once frozen, no transactions, withdrawals, deposits, standing instructions or online services will be allowed until the account is reactivated. 'The process of identifying and freezing such accounts will be completed within 15 days, starting from 1 January and 1 July every year,' said the department in a circular dated July 15, 2025. How to unfreeze an account To regain access, account holders must visit a post office and submit a few key documents for verification. Here's what you need: -Passbook or certificate of the frozen account -KYC documents: Aadhaar, PAN and address proof -Account Closure Form (SB-7A) -Cancelled cheque or a copy of a bank/post office savings account passbook for crediting the maturity value Post office staff will verify your identity and signature before reactivating the account. Once cleared, the maturity proceeds will be credited to your linked savings account or bank account through electronic transfer. If you hold any small savings account, check its maturity date and act quickly to avoid disruption. Proactive closure or extension within three years of maturity ensures uninterrupted access to your funds.
Time of India
7 days ago
- Business
- Time of India
FD rate falling: Seniors can still earn 8.2% interest with this post office scheme
Academy Empower your mind, elevate your skills SCSS interest rate Banks offering high FD interest rates: SCSS tax details SCSS account closure details With interest rates on fixed deposits (FDs) declining following the 1% repo rate by the Reserve Bank of India (RBI) since February, the Senior Citizen Savings Scheme (SCSS), which is backed by the Government of India, stands out as a good alternative, as it is risk-free and offers higher interest income and tax benefits under 80C, making it suitable especially for senior citizens seeking stable government of India revises the interest rate on SCSS along with other small savings schemes every quarter. Recently, it announced the interest rates on SCSS applicable for the July-September quarter of FY to the government's announcement, there were no changes in the interest rates for small savings schemes like Public Provident Fund (PPF), National Savings Scheme (NSC), Senior Citizen Savings Scheme (SCSS), and read: Has Govt cut PPF, NSC interest rate after RBI repo rate cut of 1%? Check the latest interest rate of post office schemes announced today "The rates of interest on various small savings schemes for the second quarter of FY 2025-26, starting from 1st July 2025 and ending on 30th September 2025, shall remain unchanged from those notified for the first quarter (1st April 2025 to 30th June 2025) of FY 2025-26," the Ministry of Finance said in a circular on June 30, offers a quarterly interest payout at an annual rate of 8.2%, whereas FD interest can be either cumulative (paid at maturity) or periodic (monthly/quarterly/half-yearly/yearly depending on the bank's terms). However, it should be noted that very few banks offer interest rates on fixed deposits above 8%, with the exception of a few small finance banks. Karur Vysya Bank provides 7.25% interest to senior citizens, and Indian Overseas Bank gives 7.45%. Punjab & Sind Bank offers 7.55% to senior citizens, while Federal Bank provides 7.35% interest on FDs with a 444-day tenure. Axis Bank offers the highest FD interest rate of 7.25% to senior citizens on 5 years to 10 years tenure. HDFC Bank offers 7.1% on 18 months to less than 21 months tenure, while ICICI Bank offers 7.10% on 2 years 1 day to 10 years. YES Bank offers an FD interest rate of 7.85% on a tenure of 3 years to less than 5 tenure of SCSS investment is 5 years (extendable for 3 more years). It qualifies for a tax deduction under Section 80C (up to Rs 1.5 lakh investment). There is a maximum investment limit of Rs 30 account matures after 5 years and can be closed by submitting the prescribed application form with the passbook at the post case of death of account holder before maturity of the accountUpon the account holder's death, the deposit will earn PO Savings Account interest from the date of death. However, if the spouse is a joint holder or sole nominee, they may continue the account at the SCSS rate of interest until maturity, provided they meet SCSS eligibility requirements
Indian Express
09-07-2025
- General
- Indian Express
As senior citizens complain about long queues in post offices, Pune Postal Services promises priority service
Senior citizens in Pune say they have a tough time standing in long queues at post offices, despite most services now being available online. They say that since most of them can't handle electronic devices, they have to visit post offices. To address the issue, the director of the Indian Postal Services (IPoS) in the Pune region has stated that they will take steps to give preference to senior citizens in the counter queues to expedite their services. Many of them regularly visit post offices to avail of the Senior Citizen Savings Scheme (SCSS), collect their pension payments, and renew or withdraw deposits, among other services. Although most services are now available online, the lack of knowledge about handling electronic devices leads them to visit post offices. 'I have been a loyal customer of India Post for more than 5 decades. And the trust is still intact. As a teacher at Rayat Shikshan Sanstha, my job for the last four decades has been standing one. But now that I'm aged and suffering from arthritis and joint pains, I need assistance while walking and cannot stand for long. So my request is that if we are given tokens, we can sit and rest in the meanwhile, and this major issue with our elderly generation will be taken care of,' said Anjani Mangale, 78, a resident of Nigdi. India Post Payments Bank (IPPB) offers a range of online services that are accessible through its mobile app and website. These include account management (balance checks and statements), fund transfers, bill payments, ATMs and money transfers. But its real potential is not realised due to server issues and the halt of some services. 'We haven't got the ATMs yet, through which we could've withdrawn cash easily through nearby ATMs. Also when we visit Post Offices, many times the servers are down, so the waiting time increases,' said Gitabai Vetal, 70, a resident of Wakad. Acknowledging the issue, Abhijeet Bansode, Director, Postal Services, Pune region, said, 'We have post offices of different sizes, in some places, there's less waiting period while in others the footfall is more, so it is not usually possible to apply a one-size-fits-all approach. But directions are given to the superintendents of the respective regions that they visit every post office in their jurisdiction, check the waiting time and footfall.' 'Through this assessment, we can provide priority service to senior citizens or in some cases, may bypass long queues, while other necessary actions will be taken to provide a hassle-free experience to the customers. Also, an effort will be made to sensitise the staff,' Bansode added. Responding to the delay in issuing ATM cards, Bansode said, 'It is a pan-India issue because the services of the current third-party vendor have been discontinued, while the process of onboarding a new partner is ongoing. However, the issue will be sorted soon.' Shubham Kurale is an intern with The Indian Express.
