A. The facility of pledging the deposit / account under the SCSS, 2004 for obtaining loans, is not permitted since the account holder will not be able to withdraw the interest amount periodically, defeating the very purpose of the scheme.
Can I withdraw money from SCSS?
The amount invested in the scheme also cannot exceed the money one receives on retirement. One can hold more than one account under the scheme. However, the sum of deposits across all SCSS accounts shall not exceed the maximum threshold. … 1% of deposit is deducted if the withdrawal occurs between 2 to 5 years.
Can SCSS be closed?
Premature withdrawal or closure of the SCSS account is permitted after completion of one year from the date of opening the account after deducting a penalty for early withdrawal or closure. The penalty varies from 1-1.5 per cent, depending on the completed tenure of the account.
Is senior citizen saving scheme safe?
The Senior Citizens Savings Scheme (SCSS) is primarily for the senior citizens of India. … The scheme offers a regular stream of income with the highest of safety and tax saving benefits. It is an apt choice of investment for those over 60 years of age.
Is SCSS interest rate fixed for 5 years?
Under Senior Citizen Savings Scheme, the deposit matures after 5 years from the date of account opening but can be extended once by an additional 3 years. The SCSS interest rate for April to June 2020 has been set at 7.4%. This is the highest interest rate among the various small savings schemes in India.
Can 15H be submitted in SCSS?
I have also FDRs of Rs 10L and bank will deduct TDS on this.My tax liabilities are met out on SCSS deductions itself then can I submit my 15 H with my bank or not ? thanking you. Interest on bank fixed deposit is taxable income. By giving a Form 15H, it does not become exempt.
Is SCSS or Pmvvy better?
For PMVVY investors, no tax benefits are eligible. But tax benefit under Section 80C is available for the contribution made to SCSS. Interest income earned from both PMVVY and SCSS is fully taxable according to the tax slabs of the senior citizen and under the category of ‘Income from Other Sources’.
Can SCSS be closed prematurely?
Is premature withdrawal of the deposits from the accounts under the SCSS, 2004 permitted? Yes, premature withdrawals are allowed, although a premature closure of the savings account is permitted only after a year, whereby the account holder will be charged 1.5% of the savings and 1% after two years.
How safe is SCSS?
SCSS is one of the most secure investment options for senior citizens. As the Government backs the scheme, the security it offers is very good. … The amount invested in the SCSS account is eligible for a tax deduction. One can claim a maximum of up to INR 1,50,000 under Section 80C of the Income Tax Act.
What is the current interest rate of SCSS?
For the first quarter of the financial year 2020-2021, the rate of interest applicable on SCSS is 7.4% p.a.
Senior Citizens Savings Scheme (SCSS) Interest Rates.
|Time Period||SCSS Interest Rates|
|1st Jan to 31st March 2020||8.6% p.a|
|1st Oct to 31st Dec 2019||8.6%p.a|
Which bank is best for SCSS?
List of Banks which Offer SCSS Accounts
- United Bank of India.
- Corporation Bank.
- Canara Bank.
- Dena Bank.
- Syndicate Bank.
- Central Bank of India.
- UCO Bank.
- Union Bank of India.
Which bank gives highest interest rate for senior citizens?
Bank FD Interest Rates in India – Regular & Senior Citizen Rates
|Bank||FD Interest Rate for General Citizens||Senior Citizen FD Interest Rates|
|SBI||2.90% – 5.40%||3.40% – 6.20%|
|ICICI Bank||2.50% – 5.50%||3.00% – 6.30%|
|HDFC Bank||2.50% – 5.50%||3.00% – 6.25%|
|Axis Bank||2.50% – 5.50%||2.50% – 6.05%|
Can husband and wife both invest in SCSS?
Ans: Yes, one can open a joint SCSS account with his/her spouse only and the maximum amount that can be invested in it is Rs. 15lakhs only.
Can I transfer my SCSS account from post office to bank?
Transferable. An account holder has the options to make a transfer of this SCSS scheme to a different bank account or a post office of their preference. A transfer form needs to be submitted for the same. The fee for this feature is negligible.
Is SCSS interest rate fixed?
The interest rate declared during the time of investment remains fixed throughout the maturity tenure and is not affected by alterations in a later quarter. For instance, Mr. Sunil deposited Rs. 2 Lakh in SCSS on 11th January 2018.
What are best savings options for senior citizens?
Here are some of the best investment options for senior citizens and pensioners: Recurring Deposits and Fixed Deposits Fixed deposits (FD) and recurring deposits (RD) are one of the most common types of investments made by retired individuals. Banks also offer a comparatively higher rate on FDs and RDs for pensioners.