Senior Citizen Savings Scheme, 2004

Q. Can a joint account be opened with any person?

A. The account can be opened jointly with spouse only.

Q. What should be the age of spouse in case of a joint account?

A. In case of a joint account, age of 1st applicant / depositor is the only factor to decide the eligibility to invest under the scheme. There is no age bar/limit for the 2nd applicant / joint holder

Q. Share of the joint account holder in the deposit in an account.

A. The whole amount of investment in an account under the scheme is attributed to the 1st applicant / Depositor only. Question of any share of the 2nd applicant / joint account holder (Spouse), therefore, does not arise.

Q. In case the depositor does not close the account on maturity and also not extend the account for a period of three years within a period of one year after maturity, how, the interest is to be calculated / paid after the maturity period?

A. The account shall be treated as matured and post maturity interest at the rate applicable to the deposits under Post Office Savings Accounts from time to time, shall only be admissible for the period beyond maturity in accordance with the rules. The amount of excess interest paid (at higher rate applicable to the deposits under SCSS) after maturity shall be deducted.

Q. Whether any Income Tax rebate / exemption is admissible?

A. No Income / Wealth Tax rebate and/or exemption is admissible under the scheme. The existing Income Tax provisions shall apply.

Q. Whether 'A' can open a joint account with his/her Spouse 'B' with maximum admissible deposits of Rs.15 lakhs and similarly 'B' can open another account individually or jointly with 'A', with any amount of deposit.

A. Yes. Both the Spouses can open individual and/or joint accounts with each other with the maximum deposits upto Rs.15 Lakh each, provided both are individually eligible to invest under relevant provisions of the rules governing the scheme.

Q. Whether new savings account is required to be opened for getting the interest credited periodically?

A. No such requirement is specified. The Depositors may get their interest, due on the deposits under the scheme, credited to their existing saving account (s), at the deposit office where their account may be single or joint, subject to the condition that the maximum limit of balance specified, if any, in the saving account, is not crossed by credit of the interest.

Q. Multiple withdrawals, as per requirements of the depositor, may be permitted.

A. No. There is, however, no bar on the depositors for opening of new/multiple accounts within the overall ceiling of Rs.15 lakh.

Q. Whether any fee is to be charged for nomination and/or change/cancellation of nomination?

A. No such fee has been specified.