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Wednesday, Aug 04, 2004

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Govt sweetens Senior Citizen Savings Scheme

Our Bureau

New Delhi , Aug 3

THE Government has added more sweeteners to the `Senior Citizen Savings Scheme,' which has now been notified with effect from August 2.

The scheme has become available initially through designated post offices.

Besides allowing a larger base of senior citizens to avail themselves of the scheme, the Government has also provided the facility of extending the maturity period by another three years.

The scheme was initially structured for citizens of 60 years of age and above.

But now, even citizens who have retired under a voluntary or special voluntary retirement scheme and have attained the age of 55 years are also eligible to invest so long as certain conditions are met.

The deposits for the scheme can be done in multiples of Rs 1,000 subject to a maximum of Rs 15 lakh.

It would carry an interest of 9 per cent per annum (taxable).

The maturity period of the deposit would be five years, extendable by another three years.

The Scheme provides for premature withdrawal after a period of one year. However, this would be subject to certain deductions.

Non-resident Indians and Hindu Undivided Families are not eligible to invest in the scheme.

The investments in the scheme will be non-tradable and non-transferable.

However, nomination facility will be available.

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