The post office has changed the rules for premature withdrawal in the Senior Citizen Savings Scheme (SCSS). After the new rules are introduced, investors will benefit more than before.
What is the new rule?
According to the report of Economic Times, under the new rule, if any SCSS investor withdraws money before the completion of one year period of account opening, then one percent will be deducted from the deposit. Earlier, if an SCSS investor withdrew money in the first year of investment, no interest was paid on the deposit. After that the entire remaining amount was given to the account holder.
What is SCSS?
Senior Citizen Savings Scheme is a government investment scheme, which comes under the Small Savings Scheme of the Post Office. Any person who has completed 60 years of age can invest in this scheme. At the same time, a person taking VRS and superannuation under 55 years and 60 years can also open SCSS account. At the same time, a person above 50 years of age retired from Defense Services can also open an account in SCSS.
This scheme can be started with a minimum investment of Rs 1000. A maximum investment of Rs 30 lakh can be made. In this, the account can be opened for five years. After this it can be extended for three years. The special thing about this scheme is that by investing in it, one gets the benefit of Section 80C of Income Tax. Through this you can get a discount of up to Rs 1.5 lakh.
Interest on SCSS
8.2 percent interest is being given by the government on SCSS. This is for the period October-December. The new interest rate of SCSS is declared every quarter by the government.