Can we take loan against SCSS?

Can loan be taken against SCSS?

A. The facility of pledging the deposit / account under the SCSS, 2004 for obtaining loans, is not permitted since the account holder will not be able to withdraw the interest amount periodically, defeating the very purpose of the scheme.

Can we withdraw interest from senior citizen saving scheme?

Premature withdrawal: After one year of opening the account, premature withdrawal is allowed. However, a 1.5% charge and a 1% charge of the total amount deposited will be charged in case of premature withdrawals after 1 year and 2 years, respectively.

Is interest on SCSS fixed for 5 years?

The scheme offers a high interest rate on the deposit. Get an income tax deduction of up to Rs. 1.5 lakh under Section 80C of the Indian Tax Act, 1961. The 5-year tenure of the account can be extended for another 3 years.

Is SCSS or PMVVY better?

But, in SCSS, one’s interest rate may vary on the quarterly basis while in PMVVY, one’s interest rate is fixed at the time of investment for the entire investment period.” Jhaveri said that in SCSS, investment period is for five years while in PMVVY, the investment period is 10 years.

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Can I invest more than 15 lakhs in SCSS?

SCSS Deposit Limits

An individual can invest up to a maximum limit of Rs 15 lakh in the Senior Citizen Saving Scheme. They are allowed to make a lump sum deposit of Rs. 1000. However, the amount invested shouldn’t be greater than the amount to be received on retirement.

Which bank is best for SCSS?

List of Banks which Offer SCSS Accounts

  • United Bank of India.
  • Corporation Bank.
  • Canara Bank.
  • Dena Bank.
  • Syndicate Bank.
  • Central Bank of India.
  • UCO Bank.
  • Union Bank of India.

Can I get monthly interest on SCSS?

Quarterly Interest Payouts: Under SCSS, the interest amount is paid to the accountholders quarterly which ensured period payouts adding to your investment. Interest will be credited on the first day of April, July, October, and January every financial year.

Can SCSS can be closed prematurely?

“Since the SCSS has a 5-year lock-in period, any withdrawals prior to that are treated as premature withdrawals even if it is due to the death of the depositor. Premature withdrawals under the scheme also attract a major penalty which ranges from 1-1.5% on the principal amount,” R.

What is interest rate of SCSS scheme?

Senior Citizen Savings Scheme is a government-backed scheme. The current interest rate applicable to SCSS is 7.4%. Tax benefits under Section 80C are available but interest is fully taxable.

Which bank gives highest interest rate for senior citizens?

Top 10 Public Sector Banks Providing Higher Returns On FDs For Senior Citizens

Sr No. Banks Interest Rate
1 Bank of Baroda 6.25%
2 State Bank of India 6.20%
3 Union Bank of India 6.10%
4 Canara Bank 6.00%
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Can I transfer my SCSS account from post office to bank?

Transferable. An account holder has the options to make a transfer of this SCSS scheme to a different bank account or a post office of their preference. A transfer form needs to be submitted for the same. The fee for this feature is negligible.

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