Senior Citizen Saving Scheme: How to close SCSS account! This much penalty will be imposed on withdrawal, understand the whole rule

Senior Citizen Savings Scheme: Penalty has to be paid for closing the SCSS account or withdrawing the amount before maturity. The government revises its interest rates every quarter.

Senior Citizen Savings Scheme: Senior Citizen Savings Scheme is being run by the Central Government. This is a savings scheme for senior citizens after retirement. People above 60 years of age can invest in this scheme and take advantage of it. There is age relaxation for the employees of the security forces for investment in this. Under this scheme, a maximum of Rs 30 lakh can be deposited. It is a safe investment option.

Investors get the facility of closing the SCSS account or withdrawing the amount before maturity. For this the investor has to pay a penalty. Under this scheme, from April 1, 2023 to June 30, 2023, up to 8.2 percent interest is being given to investors on deposits. The government revises the interest rates every quarter. Under the Senior Citizen Savings Scheme, the interest rate is paid on a quarterly basis, which is taxable.

When can SCSS account be closed?

Senior Citizen Saving Scheme is for five years. However, on maturity it can be extended for another 3 years. The account can be closed at any time by submitting Form No. 2. There are some conditions for this as well.

• If you want to close the Senior Citizen Savings Scheme account before the completion of one year, then the interest on the deposited amount will not be available. The remaining amount will be returned to the investor.
• In case of closure after one year and before the second year, an amount equal to one and a half (1.5) percent of the deposit amount will be withheld. After this, the remaining amount will be paid to the investors.
• On closure of this account after two years or so, 1 percent of the deposit amount will be withdrawn. The remaining amount will be returned to the investor.

The investment limit has been fixed under the Senior Citizen Savings Scheme. Under this, the minimum 1000 and the maximum deposit amount is 30 lakh rupees. The account matures for the next 5 years from the date of account opening.