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.
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.
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.
What is the rate of interest for senior citizen saving scheme?
To sum it up, SCSS is a very good scheme for senior citizens who want a decent risk free return on a corpus fund. At 7.4% p.a. interest rate and an investment amount of 15 lakhs, the monthly income is stated to be Rs 10,625 per month for each investor.
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’.
How many times can you extend a SCSS account?
Flexible Duration-The The SCSS account comes with a time period of five years but it can be extended up to 3 more years.
Can a person invest in both SCSS and Pmvvy?
Under both SCSS and PMVVY you can invest up to a limit of Rs 15 lakh individually or jointly. Both the Senior Citizen Savings Scheme and PMVVY can be taken into consideration. Despite the low-interest rate, POMIS can be excluded.
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.
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 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.
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.
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.
Is SCSS available in SBI?
All the individuals who are eligible to invest in this scheme can invest by opening an SBI SCSS account through any branch of SBI. By this investment, he/she can accumulate a substantial corpus.
Which LIC policy is best for senior citizen?
Pradhan Mantri Bima Yojana
The eligibility criteria of the policy range from 18 years – 70 years and provide life coverage up to Rs 2 lakh. All the policies offered under Pradhan Mantri Bima Yojana cover the different spectrum of life coverage and secure the life of the senior citizen after retirement.