Senior Citizens Savings Scheme - Thought for the old & retired

Senior Citizens Savings Scheme
The scheme was deserted in the latter half of 2008 and early 2009 as bank fd rates stat red touching 10 % to 11% . many senior citizens , retired persons stat ring removing their money from this Postal Saving Scheme which offered 9% pa.
With bank FD rates touching at all time low of 6-7.5% pa and +0.5 in case of senior citizens has led to a turn around in the postal Scheme . We have provided the details of the scheme. Further details can be obtained from the nearest Post Office.


Interest Payable, Rates, Periodicity etc.


9% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December

Investment Limits and Denominations



There shall be only one deposit in the account in multiple of Rs.1000/- maximum not exceeding rupees fifteen lakh.


Salient features including Tax Rebate


Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse. Age should be 60 years or more, and 55 years or more but less than 60 years who has retired on superannuation or otherwise on the date of opening of account subject to the condition that the account is opened within one month of receipt of retirement benefits. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest. TDS is deducted at source on interest if the interest amount is more than Rs.10,000/- p.a. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.