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You can open an account in the name of your parents in this government scheme, you will also get the benefit of tax exemption.

In this scheme, you can open an account in the name of your parents.

Senior Citizen Savings Scheme (SCSS): If you are thinking of investing in the coming days, then you can do it in the savings schemes of the post office. You definitely get good returns in these schemes. Also, the money invested in it is also completely safe. If the bank defaults, then you get back only Rs 5 lakh. But this is not the case in the post office. Apart from this, investment in post office savings schemes can be started with a very small amount.

Senior Citizen Savings Scheme (SCSS) is also included in the small savings schemes of the post office. In this scheme, you can open an account in the name of your parents. Let us know about this scheme in detail.

Rate of interest

The Post Office Senior Citizen Savings Scheme currently has an interest rate of 7.4 per cent. This interest rate is applicable from 1st April 2020.

investment amount

In this post office small savings scheme, only one deposit can be made in multiples of Rs 1,000. The maximum investment amount is Rs 15 lakh.

Who can open account?

  1. someone over 60 years old
  2. Retired civilian employee, whose age is more than 55 years and less than 60 years. The condition is that the investment has to be made within one month of receipt of retirement benefits.
  3. Retired Defense personnel, whose age is more than 50 years and less than 60 years. Provided that the investment has to be made within one month of receipt of retirement benefits.
  4. The account can be opened singly or as a joint account only with the spouse.

tax benefit

Investments made in this post office scheme get the benefit of exemption under section 80C of the Income Tax Act. Deduction can be claimed in this section up to a maximum amount of Rs 1.5 lakh.

maturity

  1. The account can be closed after five years from the date of its opening. For this, the appropriate application form has to be submitted along with the passbook at the respective post office.
  2. In the event of death of the account holder, from the date of death, interest on the account will be available at the rate of Post Office Savings Account.
  3. If the spouse is a joint holder or a sole nominee, the account can be continued till maturity, if he/she is eligible to open the account and does not have another SCSS account.

forward account

  1. The account holder can extend the account for a further period of three years from the date of maturity. For this, he has to submit the passbook along with the appropriate form in the concerned post office.
  2. The account can be extended within a period of one year from the date of maturity.
  3. After the extension of the tenure, interest will continue to accrue on the account at the rate applicable on the date of maturity.

read this also: Criminals can put stolen money in your bank account, keep these things in mind to avoid

read this also: This Dussehra, end these five bad habits related to investment, you will be able to make the future better

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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