Senior Citizen Saving Scheme (SCSS) is a risk free investment scheme for senior citizens looking for options to invest their retirement corpus. It also provides better interest rate than other small saving schemes.
In the post Senior Citizen Saving Scheme (SCSS) we have already see many features of SCSS. In this post we’ll see what options do you have once SCSS account matures and how to close SCSS account prematurely.
SCSS account maturity
Once the SCSS account completes 5 years you have two options -
- Close the account and withdraw the amount.
- Extend the SCSS account for another three years.
Closing the account
If you wish to close the account and withdraw the maturity amount after the expiry of five years from the date of opening of the account, you need to submit the filled closure form (Form E : Reference download - https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/FormforClosingSCSS.pdf) along with the passbook to the concerned deposit office.
Extending the account
If you wish to extend the account after the expiry of five years you can do so by submitting Form B (Reference- https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/ApplicationFormforExtensionofSCSS.pdf).
In case you do not close the SCSS account on maturity and also do not extend the account, the account will be treated as matured. In that case depositor will be entitled to close the account at any time. Post maturity an SCSS account will get the interest at the rate as applicable to the deposits under the Post office Savings Accounts.
Pre-mature closure of SCSS account
Pre-mature closure may happen in case of death of the depositor. You are also entitled to close the SCSS account prematurely any time after it completes one year.
Death of the depositor
In case of death of the depositor before the SCSS account matures, the account shall be closed. Nominee or legal heir needs to make an application in Form F for getting the refund of SCSS deposit along with accrued interest.
Pre-mature closure of Account
Pre-mature closure of the SCSS account by depositor is possible with certain conditions.
- SCSS account must have completed one year.
- In case the SCSS account is closed after the expiry of one year but before the expiry of two years from the date of opening of the account, an amount equal to one and half percent of the deposit shall be deducted and the balance paid to the depositor.
- In case the account is closed on or after the expiry of two years from the date of opening of the account, an amount equal to one percent of the deposit shall be deducted and balance paid to the depositor.
Partial withdrawal
Partial withdrawal in SCSS are not permitted. In case of any emergency you can anyway close the account with some penalty levied on the withdrawal.
That's all for this topic Senior Citizen Saving Scheme (SCSS) Closure And Pre-Mature Closure Rules. If you have any doubt or any suggestions to make please drop a comment. Thanks!
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