Know all about Senior Citizen’s Deposit Scheme: An healthy way to invest you life earning for secure return

 

Know all about Senior Citizen's Deposit Scheme 

As per Government of India notification dated 12.12.2019, this scheme is called as Senior Citizens’ Saving Scheme, 2019. Senior Citizen’s Deposit Scheme, 2019 is a Central Government Scheme for Senior Citizens for better returns.

All the nationalized banks, private Banks (Only HDFC, ICICI and Axis) and Post Offices are authorized to open account under this Scheme.

 

Eligibility:

1. An Individual who has attained the age of 60 years and above on the date of opening of the account. (Except NRIs and HUFs).

2. An Individual who has attained the age of 55 years or more but less than sixty years, and who has retired on superannuation or otherwise on the date of opening of an account under this Scheme, subject to the condition that the account is opened by such individual within one month of the date of the receipt of retirement benefits and proof of date of disbursal of such retirement benefit(s) along with a certificate from the employer indicating details of retirement on superannuation or otherwise, retirement benefits, (“Retirement benefits”: means any payment due to the depositor on account of retirement gratuity, commutation, leave encashment, group linked insurance, Ex-gratia payment and provident fund)employment held and period of such employment with the employer, is attached with the application form.

3. The age limit for Retired Defence Personnel (Excluding civil defence) retired on superannuation, are eligible at the age of 50yrs. (as per GSR 1235 (E) Dt. 3 Oct 2017)

4.  The Account can be opened in individual capacity or a jointly with spouse of the senior citizen/ Retiree.

5. In case of Joint account, the age of the first account holder shall be considered to determine the eligibility to open the account and there shall be no age limit for the second applicant.

 

Monetary Limits:

The individual may open one or more accounts in multiples of Rs.1000/-. • Subject to a maximum of Rs.30 Lac including all the investments made by the customer in various accounts. There shall be only one deposit in the account.

 

      Both the spouse can open single account and joint account with each other with the maximum deposit of up to thirty lakhs rupee in each account provided both are individually eligible to open the account.

   The whole amount of deposit in the Joint account shall be attributable to first account holder only.

        Duration:

    The deposits are for a period of 5 years. The same can be extended once for a further period of 3 years by the depositor.

     Extension of an account shall be available only once. Rate of Interest: As declared by the Central Government from time to time and which is payable from the date of deposit to 31st march/30th June//30th September/31st December on first working day of April/July/October/January, as the case may be, in the first instance and thereafter interest shall be payable on first working day of April/July/October/January.

Loan Facility: Not available

 Nomination:

.       The depositor may nominate a person or more than one person at the time of opening the account or any time before the closure of the account.

    The nomination can be varied/cancelled by submitting fresh nomination form.

  In case of joint account, the nominee’s claim will arise only after the death of both the account holders.

 

Transfer of Account:

The account can be transferred to other branches/banks/post offices. The depositor must apply in the prescribed format FORM G.

 

Tax Benefits:

 Qualify for tax rebate under sec 80 C of Income Tax Act. Interest earned is fully taxable. TDS is applicable.

   Passbook:

 A passbook will be issued to every depositor.

 Closure of the Account:

 The account will be closed after five years unless extended by the depositor. FORM 3 is used for closure of the account. Premature closure of the account is permitted, the account holder may withdraw the deposit and close the account at any time on an application in Form-2 subject to following condition namely: - 1.  In case the account is closed before one year after the date of opening of account, interest paid on the deposit in the account shall be recovered from the deposit and the balance shall be paid to the account holder. 2.  In case the account is closed after the expiry of one year but before the expiry of two years from the date of its opening, an amount equal to one and a half percent of deposit shall be deducted and balance should be paid to account holder. 3. In case the account is closed after the expiry of two year from the date of its opening, an amount equal to one percent of deposit shall be deducted and balance should be paid to account holder. 4. If the depositor is availing the facility of extension of account, then he/she can close the account after one year from the date of extension without any deduction. 5. In case of death of the depositor before maturity the account will be closed, and deposit will be refunded to nominee/legal heir. 6.  In case of a joint account, or where the spouse is the sole nominee, the spouse may continue the account on the same terms and conditions as specified under this Scheme, if the spouse meets eligibility conditions under the Scheme on the date of death of the account holder.

           

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