How to shut Senior Citizen Saving Scheme account? Know guidelines and penalties for withdrawals

The Senior Citizen Savings Scheme, a financial savings initiative tailor-made to cater to the wants of senior residents after retirement, is presently below the auspices of the Central Government. Eligible people aged 60 years and above can make investments on this scheme and reap the advantages of an exceedingly safe funding possibility. It’s price mentioning that there is a rest in age standards for safety forces workers who search to speculate on this program.

As per the rules of this system, the utmost deposit restrict is capped at Rs. 30 lakh. Investors can avail themselves of the ability of closing their SCSS account or withdrawing funds earlier than the maturity interval. However, there is a penalty that applies when that is finished. It’s price noting that the federal government evaluations the rates of interest quarterly, and below the Senior Citizen Savings Scheme, the rate of interest is taxable and paid on a quarterly foundation. From April 1, 2023 to June 30, 2023, traders stand to achieve as much as 8.2 p.c curiosity on deposits made throughout the program.

When can an SCSS account be closed? The Senior Citizen Savings Scheme has a maturity interval of 5 years. However, traders can prolong it for an additional three years after maturity. The account might be closed at any time by submitting Form No. 2, however there are situations connected to it.

If an investor desires to terminate their Senior Citizen Savings Scheme account earlier than the primary yr’s completion, they won’t obtain any curiosity on the deposited quantity. The remaining quantity will likely be returned to the investor. In case of closure after the primary yr however earlier than the second yr, an quantity equal to 1 and a half (1.5) p.c of the deposit quantity will likely be withheld, and the remaining quantity will likely be paid to the investor. Upon the closure of this account after two years, one p.c of the deposit quantity will likely be withdrawn, and the remaining quantity will likely be returned to the investor.

It’s price noting that the funding restrict is fastened below the Senior Citizen Savings Scheme. The minimal deposit quantity is Rs. 1000, whereas the utmost quantity is Rs. 30 lakh, and the account matures for the subsequent 5 years from the date of opening.

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