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Senior Citizen Scheme.

Senior citizen scheme

Post Office Senior Citizen Savings Scheme

This scheme is only meant for senior citizens, and one of THE BEST option available in the market for senior citizens.

Below are some of the features of post office senior citizen savings scheme :

Features / Advantages of post office senior citizen savings scheme

  • Interest rate is 9.2 % per annum
  • Maturity period is 5years. But, can be extended to additional 3 years. i.e total 8 years
  • Nomination facility is also available. Option of changing nominee name is also available, if required.
  • Premature close of the account is possible only after 1 year. But, if the account holder decides to choose premature closer of the account after 1 year and before 2nd year, 1.5% of the deposits will be deducted. If it is any time after 2nd year, 1% of the deposit amount will be deducted.
  • Account can be transferrable from one post office to the other.
  • In case of death of the account holder before maturity period, account can be closed and the amount can be returned without any deductions along with the interest amount.
  • Tax benefit is available under 80C section.

Disadvantages of post office senior citizen savings scheme

  • People who are above 60 years of age are eligible for this investment option.
  • NRIs are not eligible.
  • If the interest amount is more than 10, 000 rupees per annum, TDS will be deducted

Responses (2)

  1. sudhir
    March 19, 2016 at 6:57 am · Reply

    Wheather old senior citizen accounts opened would attract lower rates of interest from 1st April, 2016

    • Pradeep Daram
      May 3, 2016 at 2:20 am · Reply

      Yes of course. Senior citizen are very particular about the interest rates. Thats the reason many banks come with different types of senior citizen schemes with better returns than normal citizens.

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