Abhijit Shaha & Co.

Retirement brings with itself several complication and doubts, but there are savings products that are safe and ensure guaranteed retirement income. The Senior Citizen Savings Scheme is a deposit scheme introduced by Government of India to provide guaranteed returns to senior citizens through a safe investment. This scheme ensures a regular income stream for senior citizens in retirement. The salient features of this scheme are as follows

• Minimum eligible age for investment 60 years (55 years for those who have retired on superannuation or under a voluntary or special voluntary scheme). The retired personnel of Defence Services (excluding Civilian Defence Employees) will be eligible to invest irrespective of the age limits subject to the fulfillment of other specified conditions
• Rate of Interest 9.30% p.a.
• Maximum investment limit  is Rs. 15 lakhs
• Investment to be in multiples of Rs. 1000/
• Premature closure/withdrawal facility  Permitted after one year of opening the account but with penalty.
• Interest is fully taxable
• TDS applicable tax will be deducted at source TDS is applicable to the Scheme as interest payments have not been exempted from deduction of tax at source. (GOI letter F. No.2/8/2004 /NS-II dated March 28, 2006)
• Tenure of deposit 5 years, which can be extended by 3 years.
• Accounts can be held both in single and joint holding modes. Joint holding is allowed only with spouse
• A Joint account under the SCSS, 2004 can be opened only with the spouse
• In case of a joint account, the age of the first applicant / depositor is the only factor to decide the eligibility to invest under the scheme. There is no age bar/limit for the second applicant / joint holder
• Both the spouses can open individual and / or joint accounts with each other with the maximum deposits up to Rs.15 lakh each, provided both are individually eligible to invest under relevant provisions of the Rules governing the Scheme. (Rules 3 and 4 )
• The whole amount of investment in an account under the scheme is attributed to the first applicant / depositor only. As such, the question of any share of the second applicant / joint account holder (i.e. spouse) in the deposit account does not arise. [Rule 3 (3)]
• Nomination facility is available

1. The depositor may, at the time of opening of the account, nominate a person or persons who, in the event of death of the depositor, will be entitled to payment due on the account. [Rule 6 (1)]
2. Nomination may be made by the depositor at any time after opening of the account but before its closure, by an application in Form C accompanied by the Pass book to the deposit office. [Rule 6 (2)]
3. Nomination made by the depositor may be cancelled or varied by submitting a fresh nomination in Form C to the deposit office where the account is being maintained. [Rule 6 (3)]
4. Nomination can be made in joint account also. In such a case, the joint holder will be the first person entitled to receive the amount payable in the event of death of the depositor. The nominee’s claim will arise only after the death of both the joint holders. [Rule 6 (4)]
5. Person holding a Power of Attorney cannot sign for the nominee in the nomination form.

Application forms available with Post Offices and designated branches of 24 Nationalized banks and one private sector bank

1. State Bank of India
2. State Bank of Hyderabad
3. State Bank of Bikaner and Jaipur
4. State Bank of Patiala
5. State Bank of Mysore
6. State Bank of Travancore
7. Allahabad Bank
8. Andhra bank
9. Bank of Baroda
10. Bank of India
11. Bank of Maharashtra
12. Canara Bank
13. Central Bank of India
14. Corporation Bank
15. Dena Bank
16. Indian Bank
17. Indian Overseas Bank
18. Punjab National Bank
19. Syndicate Bank
20. UCO Bank
21. Union Bank of India
22. United Bank of India
23. Vijaya Bank
24. IDBI Bank
25. ICICI Bank Ltd