• An individual of the Age of 60 years or more
may open the account.An individual of the age of 55 years or more but less than
60 years who has retired on superannuation or under VRS can also open account
subject to the condition that the account is opened within one month of receipt
of retirement benefits and amount should not exceed the amount of retirement
benefits.
• Maturity period is 5
years.From 1.4.2015, interest rates are as follows:-
9.3% per annum, payable from
the date of deposit of 31st March/30th Sept/31st December in the first instance
& thereafter, interest shall be payable on 31st March, 30th June, 30th Sept
and 31st December.There shall be only one deposit in the account in multiple of
INR.1000/- maximum not exceeding INR 15 lakh.
• A depositor may operate
more than one account in individual capacity or jointly with spouse (husband/wife).
• Account can be opened by
cash for the amount below INR 1 lakh and for INR 1 Lakh and above by cheque
only.
• In case of cheque, the
date of realization of cheque in Govt. account shall be date of opening of
account.
• Nomination facility is
available at the time of opening and also after opening of account.
• Account can be transferred
from one post office to another.
• Any number of accounts can
be opened in any post office subject to maximum investment limit by adding
balance in all accounts.
• Joint account can be
opened with spouse only and first depositor in Joint account is the investor.
• Interest can be drawn through auto credit
into savings account standing at same post office, through PDCs or Money Order.
• In case of SCSS accounts, quarterly
interest shall be payable on 1st working day of April, July, October and
January. It will be applicable at all CBS Post Offices.
*Quarterly interest of SCSS
accounts standing at CBS Post offices can be credited in any savings account
standing at any other CBS post offices.
• Premature closure is
allowed after one year on deduction of an amount equal to1.5% of the deposit
& after 2 years 1% of the deposit.
• After maturity, the
account can be extended for further three years within one year of the maturity
by giving application in prescribed format. In such cases, account can be
closed at any time after expiry of one year of extension without any deduction.TDS
is deducted at source on interest if the interest amount is more than INR
10,000/- p.a.
·
Investment under this scheme qualifies for
the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.