Senior Citizens Savings Scheme: Was interest rate hiked for July-September 2023 quarter? If you are interested in investing in SCSS, then here is a look at important features of the scheme
Senior Citizens Savings Scheme (SCSS) interest rate for the July-September fiscal quarter of 2023–24 was announced. The SCSS interest rate remained unchanged at 8.2%, according to the government's decision. In the last quarter, the rates were hiked by 20 basis points from 8% to 8.2%.If you are interested in investing in SCSS, then here is a look at important features of the scheme.
Minimum and maximum investment amount
The investment minimum is Rs 1,000 and the investment maximum is Rs 30 lakh. If there is an excess amount in a SCSS account, the excess funds will be reimbursed to the depositor right away, and only the PO Savings Account Interest Rate will be in effect from the date of the excess until the date of the reimbursement.
Interest rate
Note that the interest rate will remain the same for the duration of the investment once it is completed. Interest is be payable on a quarterly basis and applicable from the date of deposit to 31st March/30th June/30th September/31st December.
TDS
According to the Post Office website, "Interest is taxable if total interest in all SCSS accounts exceeds Rs.50,000/- in a financial year, and TDS at the prescribed rate shall be deducted from the total interest paid."
Interest can be withdrawn via auto credit into a savings account at the same post office or ECS. Monthly interest on SCSS accounts at CBS Post Offices can be credited to savings accounts at any CBS Post Office.
SCSS premature closure
Accounts can be closed prematurely at any time after they are opened.
If the account is closed before one year, no interest is payable, and any interest paid in the account is deducted from the principal.
If the account is closed after one year but before two years from the date of opening, 1.5% of the principal balance will be cut off. If the account is closed after 2 years but before 5 years from the date of opening, 1% of the principal amount will be taken away.
Extended accounts can be terminated after one year from the date of extension without incurring any fees.
SCSS extension of account
The account holder may extend the account for another three years from the date of maturity by submitting the appropriate paperwork along with the passbook to the relevant post office. Within one year of maturity, the account can be extended. The extended account will earn interest at the rate in effect on the maturity date.
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This story originally appeared on: India Times - Author:Faqs of Insurances
