Here are key things to know about post office Senior Citizen Savings Scheme (SCSS):
1. Eligibility: Post office SCSS account can be opened by an individual of 60 years or above. However, if any person who is 55 years or more but less than 60 years, and has retired on superannuation or under VRS (Voluntary Retirement Scheme) can also open the SCSS account subject to the certain conditions, according to India Post.
2. Maturity: The maturity period of the scheme is five years. After maturity, the account can be extended for further three years within one year of the maturity by giving an application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction, said India Post.
3. Premature closure: Under the post office's scheme, premature closure is allowed after one year on deduction of an amount equal to 1.5 per cent of the deposit and after 2 years, 1 per cent of the deposit is deducted.
4. Income tax benefit: Investment under this scheme also qualifies for benefits under Section 80C of the Income Tax Act. TDS is deducted at source on interest if the interest amount is more than Rs. 10,000 per annum.
5. Other facilities: Under the scheme, nomination facility is available at the time of opening and also after opening of account. A depositor may operate more than one account in individual capacity or jointly with spouse and the account can also be transferred from one post office to another.