Friday, August 20, 2010

Higher Rate of Interest under Senior Citizens Saving Scheme

Friday, August 20, 2010 18:51 IST
The Senior Citizens Savings Scheme, 2004 (SCSS), was designed to meet the need of a regular flow of income for the senior citizens and retired persons with security of investment, liquidity of funds and operation convenience. Keeping in view of the above, higher rate of interest at 9 percent per annum is offered to all senior citizens under this scheme. Persons who are 60 years of age and above can make a deposit under the scheme. Those retired persons who are 55 years of age and above but below 65 years are also eligible to invest their retirement benefits subject to maximum deposit limit of Rs.15 lakh under the scheme.

Facility of loan or overdraft against the deposit would necessitate pledging of the deposit under this scheme. As a consequence, the subscriber of a pledged account will not be able to withdraw the interest amount periodically defeating the very purpose of the scheme.

This information was provided by the Minister of State for Finance, Shri Namo Narain Meena in reply to an Unstarred Question in Lok Sabha today. **** DSM/SKK
Higher Rate of Interest under Senior Citizens Saving Scheme

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