Senior Citizen Financial savings Scheme rate of interest hiked for October-December quarter: What’s the newest SCSS charge

The federal government has elevated the rates of interest of some small financial savings schemes for the third quarter (October-December) of the present monetary 12 months. The rates of interest for these put up workplace schemes have been elevated by as much as 30 foundation factors for the quarter beginning October 1, 2022.

For the quarter ended thirty first December 2022, the federal government has raised Fee of curiosity On Senior Citizen Financial savings Scheme (scss) up 20 bps to 7.6% from 7.4% p.a.

options of senior citizen financial savings plan

in response to State Financial institution Of India Web site, these are the principle options of SCSS

  • The account shall be opened with a minimal deposit of 1 thousand rupees or any quantity in multiples of 1 thousand rupees which shall not exceed fifteen lakh rupees.
  • The depositor can lengthen the account for an additional interval of three years after the maturity interval of 5 years.
  • Deposits made underneath these guidelines shall appeal to curiosity as per quarterly directions by the Authorities of India once in a while. At current it’s 7.40% p.a. from 01.04.2020.
  • If the curiosity payable each quarter shouldn’t be claimed by the account holder, then no further curiosity can be accessible on such curiosity.
  • The complete quantity deposited within the joint account can be payable to the primary account holder solely.
  • Each the husband and spouse can open single account and joint account with one another.
  • The depositor can nominate one individual or a couple of individual.
  • Nomination made by the depositor might be canceled or modified.
  • The deposit made on the time of opening of the account shall be paid on or after the expiry of 5 years or after the expiry of eight years the place the account was prolonged from the date of opening of the account.
  • A number of withdrawals is not going to be allowed from one account.

Can an account be transferred from one deposit workplace to a different deposit workplace?

SCSS accounts might be transferred from one deposit workplace to a different deposit workplace. If the deposit quantity is one lakh or extra, a switch payment of Rs.5 per lakh on deposit for first switch and Rs.10 per lakh on deposit for subsequent switch can be relevant.

untimely closure

As per the federal government notification on SCSS, these are the foundations for untimely closure.

– (1) The account holder might at any time on an utility in Kind-2 withdraw the deposit and shut the account topic to the next situations, particularly:-

(i) If the account is closed earlier than one 12 months from the date of opening of the account, the curiosity paid on the quantity standing to the credit score of the account shall be recovered from the deposit quantity and the steadiness quantity shall be paid to the account holder.

(ii) If the account is closed after the expiry of 1 12 months however earlier than the expiry of two years from the date of its opening, the quantity equal to at least one and a half p.c. The deposit can be deducted and the steadiness quantity can be paid to the account holder.

(iii) an quantity equal to at least one per cent, if the account is closed on or after the expiry of two years from the date of opening of the account. Deposit can be deducted and steadiness can be paid to the account holder

(2) The account holder availing the power of extension of account can withdraw the deposit and shut the account at any time after the expiry of 1 12 months from the date of extension of the account with none deduction.

(3) In case of untimely closure, curiosity on the deposit shall be payable as much as the date previous the date of untimely closure after deduction of penalty.

(4) A number of withdrawals is not going to be allowed from an account.

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