Senior citizen scheme is a deposit scheme for elders or you can say that it’s a best option of getting future return so that you don’t have to depend on others at the at the age of retirement.  Generally, retirement brings lot of troubles and barriers for future matters. This scheme is initiated by Government for elders for their further customary income flow. This is an assured return income for seniors during their retirement. This is a secure form of investment scheme as since it is backsides by Government, so principal and interest is sured to be receivable.

Who can subscribe

An Indian resident who retired voluntary and attained at the age of 55years can subscribe to this scheme but specifically under voluntary retirement scheme. And anyone who is of 60years or above is able to open this account. Any person who is retired from some defense service is also able for this type of scheme. But those who are non-resident, HUF or have an Indian origin can’t subscribe to this scheme.

Where to apply

This scheme is accessible in any post -office, having some saving mechanism from bank. SBI branch or some nationalized banks who are involved in PPF works are eligible to float such scheme. For e.g. State bank of India, ICICI, UCO bank, Bank of Baroda, Canara  Bank , Maharashtra bank , Punjab national bank, State bank of India, Syndicate bank, Bank of Indore, Indian bank , Indian overseas bank, Allahabad bank and so on.

Subscribe

A person can subscribe for individual deposit account or joint account for this purpose. Joint account is permissible only with their spouse. To invest in this account bare minimum amount limit is Rs.1000 and with an upper limit is Rs.1500000. Any further amount can also be invested but in multiples of Rs. 1000 merely.

Interest

Current interest rate is 9.30% per annum compounded on quarterly basis and it may further get increased according to regulation. Some dates are fixed for this scheme on which the interest is credited to the respective account of the account holder which is as follows:

Starting   from  31stMarch, 30th June,  30th September  till  31st March  every year.

Nomination

Nomination can be prepared even after opening of this account or before of this. At any time this can be changed or cancelled when the holder is willing to. The senior citizen saving scheme is provided with various facilities that anyone who has this type of account can be transferred from one post-office to other post-office. More than one person can be able to be a nominee for this purpose. Nominee is liable to receive entitled amount only after the death of the account holders.

Maturity

Period of maturity is 5 years and further it can be continued for 3 more years. An option is also facilitated that before the maturity period depositor can withdraw the amount however the amount has lock-in period of 1 year.  Consequences of pre-mature encashment is that, before encashment of 2^nd year, a sum equivalent to 1.5% of the total amount is to be deduct from the total amount deposited till date and the balance sum is to be paid in case of pre-mature encashment. And in case of more than 2^nd year, 1% is to be deducted from the total amount.

Loan

An individual cannot apply for loan against this purpose, loan facility is null for this scheme. So there is no scope of hypothecation of this deposit.