Under the Post Office Senior Citizen Savings Scheme (SCSS), foreign citizens do not have the option to invest in it. This scheme has a maturity period of 5 years, and account holders can choose to extend it for an additional 3 years by submitting an application and following other procedures.
Maturity
Account holders can conveniently extend the duration of the scheme by submitting an application a year before the maturity date. Additionally, investments of less than Rs 1 lakh can be directly deposited in the account, while amounts exceeding Rs 1 lakh must be deposited with a cheque. The investors have the option to choose a nominee for their account.
Single and joint accounts
Multiple accounts can be opened under the Senior Citizen Savings Scheme (SCSS). An individual can open either a single or joint account. However, joint accounts are limited to spouses only. In a joint account, the investor is considered the first depositor. These accounts can also be transferred from a post office to a bank or vice versa.
To close a Senior Citizen Savings Scheme (SCSS) account before the maturity date, follow these steps:
• Submit an application in Form 2 for premature closure.
• If the account is closed before 1 year, the interest earned on the deposited amount will be deducted from the principal.
• If the account is closed before 2 years, a penalty of 1.5% will be imposed.
• If the account is closed after 2 years, a penalty of 1% of the investment amount may be deducted.