BANKING AFFAIRS

Detailed explanation-1: -The maturity period for the SCSS scheme is 5 years. It can be extended for another 3 years, effectively bringing up the period to 8 years. If an individual is willing to extend such a period by 3 years, he/she shall submit Form B after duly filling it. An extension is allowed only once.

Detailed explanation-2: -The government of India offers the Senior Citizens’ Savings Scheme (SCSS) that assists senior citizens in saving for retirement and receiving quarterly interest payments. SCSS offers an interest rate of 7.4% for the quarter ending 31 March 2022. You can open an SCSS account with a minimum deposit of Rs.1, 000.

Detailed explanation-3: -SCSS Term/Maturity Period The amount deposited in the SCSS account earns interest for a term of five years. An account holder can apply for a one-time extension of three years within one year of the maturity of the account.

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.

Detailed explanation-5: -Q. Is premature withdrawal of the deposits from the accounts under the SCSS, 2004 permitted? Premature withdrawal / closure of the deposits from the accounts under the SCSS, 2004 has been permitted after completion of one year from the date of opening of theaccount after deducting the penalty amount as given below.