Latest news with #SeniorCitizenSavingsScheme
News18
a day ago
- Business
- News18
Senior Citizen Savings Scheme VS Public Provident Fund: Key Differences
Last Updated: Differences Between Senior Citizen Savings Scheme and PPF, Senior Citizen Savings Scheme, Public Provident Fund, SCSS Benefits, PPF Features Senior Citizen Savings Scheme (SCSS) and Public Provident Fund (PPF) are both popular money-saving and investment tools used by Indian citizens for stability and future financial goals. It is common for salaried employees and those seeking retirement welfare to safeguard their money in these two schemes because of the range of benefits they come with, catering to a wider section of society. While diversifying your investment portfolio with both PPF and SCSS can be beneficial, what if you had to choose one of the two schemes? Here are the key differentials for you to understand. The goal with investments in the Public Provident Fund is to accumulate wealth and build a significant retirement corpus. With the Senior Citizen Savings Scheme, those nearing the end of their professional life can get a regular income stream. While the PPF is open for all Indian citizens, the SCSS is specifically designed for senior citizens aged 60 years and above. Investment Tenure Public Provident Fund investments are fixed over a tenure of 15 years that you can extend in blocks of up to five years. On the other hand, the Senior Citizen Savings Scheme has an initial tenure of five years, which can be stretched for an additional period of 3 years. The interest rate on PPF investment currently stands at 7.1 per cent per annum, compounded annually. The Indian government reviews the interest rates on PPF every quarter. SCSS offer a higher return of 8.2 per cent annually, which is also subject to periodic revisions. Tax Benefits Investments in the PPF scheme up to a maximum limit of Rs 1.5 lakhs per financial year are eligible for tax deductions under the Indian government's Income Tax Act Section 80C. Both the interest earned and maturity amount are tax-exempt, giving it an edge over the SCSS. While contributions to the Senior Citizen Savings Scheme also fall under the Income Tax Act benefit, the deductions are subject to the overall limit and the interest earned is taxable. Minimum Investment and Withdrawal The maximum PPF investment may be Rs 1.5 lakhs, but you can start a PPF account with a minimum sum of Rs 500. The minimum deposit required for the SCSS scheme is Rs 1,000, with a maximum limit of Rs 30 lakhs. Withdrawals are allowed under both the schemes. Investors can make partial withdrawals from the 7th year onwards under PPF, subject to certain conditions. Full withdrawals are only allowed upon maturity. You can make premature withdrawals from SCSS upon completion of one year with due penalties deducted. view comments First Published: July 24, 2025, 09:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
7 days ago
- Business
- News18
SCSS Explained: 8.2% Interest, Tax Savings, And Guaranteed Income For Senior Citizens
SCSS not only provides safety but also offers a regular income to retirees. Senior citizens often look for safe and steady income options. At a time when fixed deposit rates are fluctuating and many investment options offer lower returns, one scheme stands strong – the Senior Citizen Savings Scheme (SCSS). SCSS not only provides safety but also offers a regular income to retirees. It gives an impressive 8.2 per cent per annum interest. Senior citizens can also get a tax benefit under Section 80C up to Rs 1.5 lakh. What is SCSS? The Senior Citizen Savings Scheme is a government-backed savings plan designed specifically for people aged 60 years and above. The scheme is available at post offices and authorised banks. The interest rate is paid every quarter. The minimum amount you need to deposit is Rs 1,000, and the maximum is Rs 30 lakh. When the total amount is less than Rs 1 lakh, an individual may deposit the money in cash. When the deposit exceeds Rs 1 lakh, the person should pay using a cheque. Repayment Tenure The repayment tenure for SCSS is 5 years. But if you want to close it prematurely, you can do so by filling Form 2. But you cannot withdraw multiple times; only one-time full withdrawal is allowed. If you want to close the account before 1 year, then you will have to return all the interest you earned. And if you close the account after 1 year but before two years, then a penalty of 1.5 per cent will be imposed on your deposit amount. If you are willing to close the account after 2 years, then a penalty of 1 per cent will be deducted from your deposit. How to open SCSS account? Go to any post office or authorised bank branch. Fill Form A, which is the SCSS account opening form. Enter personal details such as name, date of birth, address, deposit amount and nominee details. Submit the required documents such as Aadhaar Card, PAN card, passport, passport size photo and retirement proof. Deposit the amount in cash if the amount is less than Rs 1 lakh or by cheque or demand draft for above Rs 1 lakh. Once the verification is done, the account will be opened. You will get a passbook or account confirmation. You can also open a joint account with your spouse but the primary account holder must be a senior citizen. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
7 days ago
- Business
- News18
PPF, Sukanya Accounts May Be Frozen After Maturity. Check What You Must Do In Time
Last Updated: Accounts that are not extended for reinvestment or closed within three years of maturity will be frozen, as per the advisory, restricting any further access or transactions The Postal Department has issued an important advisory for investors in popular small savings schemes like the Sukanya Samriddhi Yojana, Public Provident Fund (PPF), National Savings Scheme, and the Senior Citizen Savings Scheme. The department has warned that discrepancies or errors in managing these accounts could lead to them being frozen, restricting all withdrawals and transactions until the issues are resolved. The advisory highlights that accounts which have not been extended for reinvestment or closed within three years of maturity will be at risk. If three years have passed since the maturity date and no action has been taken, the department will freeze these accounts. Consequently, account holders will be unable to access their funds. This measure is designed to protect accounts from fraudulent activities. The Postal Department states that inactive accounts are vulnerable to scams, and freezing them is a preventive step to safeguard investors' money from illegal withdrawals. The department stated that this process will now be carried out twice a year to safeguard investors' hard-earned money. Investors in small savings schemes should note that within three years of maturity, they must either withdraw the funds or reinvest them to avoid complications. The accounts under scrutiny include PPF, Sukanya Yojana, NSC, RD, fixed deposits, monthly income schemes, Kisan Vikas Patra, and the Senior Citizen Savings Scheme. Once frozen, these accounts will be inaccessible for any transactions, including online transfers. How Can The Account Be Reactivated? For reactivating a frozen account, the Postal Department has provided a clear procedure. Account holders must visit the postal office and submit their account passbook, KYC documents, and account closure form SB 7A. The account will then be closed, and the remaining balance will be handed over to the account holder. Account freezing will be carried out twice a year, on January 1 and July 1, as per the new schedule. The entire freezing process will be completed within 15 days. view comments First Published: July 18, 2025, 16:21 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
&w=3840&q=100)
Business Standard
7 days ago
- Business
- Business Standard
Post offices to freeze inactive accounts: Here's what customers must do
The postal department has begun a twice-yearly drive to freeze small savings accounts inactive for more than three years after maturity, aiming to protect depositors' funds and prevent unauthorised access. As a new practice, post offices will identify such accounts every January and July. If your account has matured but you haven't withdrawn the funds or extended the tenure within three years, it risks being frozen. Which accounts are impacted? The rule applies to all major small savings schemes, including: Time Deposits Monthly Income Scheme Public Provident Fund Senior Citizen Savings Scheme Kisan Vikas Patra National Savings Certificates Recurring Deposit Once frozen, no transactions, withdrawals, deposits, standing instructions or online services will be allowed until the account is reactivated. 'The process of identifying and freezing such accounts will be completed within 15 days, starting from 1 January and 1 July every year,' said the department in a circular dated July 15, 2025. How to unfreeze an account To regain access, account holders must visit a post office and submit a few key documents for verification. Here's what you need: -Passbook or certificate of the frozen account -KYC documents: Aadhaar, PAN and address proof -Account Closure Form (SB-7A) -Cancelled cheque or a copy of a bank/post office savings account passbook for crediting the maturity value Post office staff will verify your identity and signature before reactivating the account. Once cleared, the maturity proceeds will be credited to your linked savings account or bank account through electronic transfer. If you hold any small savings account, check its maturity date and act quickly to avoid disruption. Proactive closure or extension within three years of maturity ensures uninterrupted access to your funds.
Time of India
16-07-2025
- Business
- Time of India
FD rate falling: Seniors can still earn 8.2% interest with this post office scheme
Academy Empower your mind, elevate your skills SCSS interest rate Banks offering high FD interest rates: SCSS tax details SCSS account closure details With interest rates on fixed deposits (FDs) declining following the 1% repo rate by the Reserve Bank of India (RBI) since February, the Senior Citizen Savings Scheme (SCSS), which is backed by the Government of India, stands out as a good alternative, as it is risk-free and offers higher interest income and tax benefits under 80C, making it suitable especially for senior citizens seeking stable government of India revises the interest rate on SCSS along with other small savings schemes every quarter. Recently, it announced the interest rates on SCSS applicable for the July-September quarter of FY to the government's announcement, there were no changes in the interest rates for small savings schemes like Public Provident Fund (PPF), National Savings Scheme (NSC), Senior Citizen Savings Scheme (SCSS), and read: Has Govt cut PPF, NSC interest rate after RBI repo rate cut of 1%? Check the latest interest rate of post office schemes announced today "The rates of interest on various small savings schemes for the second quarter of FY 2025-26, starting from 1st July 2025 and ending on 30th September 2025, shall remain unchanged from those notified for the first quarter (1st April 2025 to 30th June 2025) of FY 2025-26," the Ministry of Finance said in a circular on June 30, offers a quarterly interest payout at an annual rate of 8.2%, whereas FD interest can be either cumulative (paid at maturity) or periodic (monthly/quarterly/half-yearly/yearly depending on the bank's terms). However, it should be noted that very few banks offer interest rates on fixed deposits above 8%, with the exception of a few small finance banks. Karur Vysya Bank provides 7.25% interest to senior citizens, and Indian Overseas Bank gives 7.45%. Punjab & Sind Bank offers 7.55% to senior citizens, while Federal Bank provides 7.35% interest on FDs with a 444-day tenure. Axis Bank offers the highest FD interest rate of 7.25% to senior citizens on 5 years to 10 years tenure. HDFC Bank offers 7.1% on 18 months to less than 21 months tenure, while ICICI Bank offers 7.10% on 2 years 1 day to 10 years. YES Bank offers an FD interest rate of 7.85% on a tenure of 3 years to less than 5 tenure of SCSS investment is 5 years (extendable for 3 more years). It qualifies for a tax deduction under Section 80C (up to Rs 1.5 lakh investment). There is a maximum investment limit of Rs 30 account matures after 5 years and can be closed by submitting the prescribed application form with the passbook at the post case of death of account holder before maturity of the accountUpon the account holder's death, the deposit will earn PO Savings Account interest from the date of death. However, if the spouse is a joint holder or sole nominee, they may continue the account at the SCSS rate of interest until maturity, provided they meet SCSS eligibility requirements
