BANKING AFFAIRS

Detailed explanation-1: -As name itself suggests, this scheme is only for the senior citizens. The account may be opened by an individual, who has attained age of 60 years or above on the date of opening of the account.

Detailed explanation-2: -Individuals who have attained the age of 55 years old, but are below the age of 60 years old and have retired on superannuation are eligible to open an SCSS account. Individuals who have attained the age of 55 years old and have retired before the implementation of the SCSS rules are eligible under the scheme.

Detailed explanation-3: -Premature withdrawal is allowed in the SCSS scheme after one year. There is a penalty of 1.5 per cent of the total amount deposited in case withdrawal is made between one and two years. The penalty is one per cent if withdrawal is made after two years.

Detailed explanation-4: -The tenure of this scheme is 5 years, therefore the deposits mature after 5 years from the date of account opening. However, the senior citizens with SCSS account have the option of exceeding the tenure for another 3 years. The extension can be made once within 1 year of maturity of the Senior Citizen Savings Scheme.