Shreya Presentation

7/30/2019 Shreya Presentation

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Presentation on

Senior Citizen Savings SchemePost Office Term Deposit

BY

Shreya Gautam


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Senior Citizen Savings SchemeThe Senior Citizen Savings Scheme (or SCSS) is a deposit

scheme specially meant for elderly citizens.

A new avenue of investment and return for Senior Citizen.

It is meant for those who want a regular source of income in the

later years of their life.


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Salient features


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Restrictions

The Senior Citizen Savings Scheme account can be opened

only by individuals. It can not be opened by Non-Resident

Indians (NRI), Persons of Indian Origin (PIO) and Hindu

Undivided Families (HUF).

Source of Funds

For people between 55 and 60 years of age, the amount

invested in SCSS has to come from their retirement benefits.

For persons over the age of 60 years, there is no restriction

on the source of funds invested.


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How to invest in the Senior Citizen Savings

Scheme (SCSS)

A Senior Citizen Savings Scheme account can

be opened at any designated post office

throughout the country.

The scheme can also be opened at the

designated branches of the following public

sector banks:


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At present, 24 Nationalized banks and one private sector

bank, as per list below, are authorized to handle the SCSS

1. State Bank of India 13. Central Bank of India

2. State Bank of Hyderabad 14. Corporation Bank

3. State Bank of Bikaner and

Jaipur

15. Dena Bank

4. State Bank of Patiala 16. Indian Bank

5. State Bank of Mysore 17. Indian Overseas Bank

6. State Bank of Travancore 18. Punjab National Bank

7. Allahabad Bank 19. Syndicate Bank

8. Andhra bank 20. UCO Bank

9. Bank of Baroda 21. Union Bank of India

10. Bank of India 22. United Bank of India

11. Bank of Maharashtra 23. Vijaya Bank

12. Canara Bank 24. IDBI Bank


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TOP FIVE SENIOR CITIZEN

DEPOSIT SCHEMES IN INDIA


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Bank Name Interest Rate(%)

Compounded Qtrly

What Rs. 10,000 will

grow to

Indian Bank (1 yrs) 10.00 11,038

ING Vysya Bank

(1yrs)

10.00 11,038

Tamilnadu

Mercantile Bank

(1 yrs)

10.10 11,038

Yes Bank (1 yrs) 10.00 11038

Central Bank Of India

(1 yrs)

9.75 11011

Bank of Maharashtra

(2 yrs)

10.50 12196

Lakshmi Vilas Bank

(2 yrs)

10.50 12196


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Should you invest in Senior Citizen SavingsScheme (SCSS)?


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High Interest Rate

The prevailing interest rates on bank fixed deposits atpresent (October 2012) are 5% 6% per annum. The Senior

Citizen Savings Scheme is very popular with people, as it

provided interest rates that was way above the average

market rates.

With interest rates on FDs being as high as 9%-10% per

annum (with an additional 0.5% for senior citizens), the

interest offered on Senior Citizen Savings Scheme looks

quite low.


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Post Office Term DepositThe Post Office Term Deposit (POTD) is similar to a bank fixed

deposit, where you save money for a definite time period earning a

guaranteed return through the tenure of the deposit. At the end of the

deposits tenure; the maturity is made up of the capital deposited and

the interest it earns. Time deposits can be made for a period of 1

year, 2 years, 3 years and 5 years


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How to Open an Account

Once you have selected the

post office to open the POTD

account, you can open a POTD

for which you will need thefollowing documents:

POTD

depositopening form

declarationin form No60 or 61 asper the IT

Act

identityproof for

verification

Choose anominee

witnesssignature

Once you have selected the post office to open the POTD account, you can open a POTD for which you will need the following documents:Once you have selected the post office to open the POTD account, you can open a POTD for which you will need the following documents:


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Any individual can open an account.

Trust, Regimental Fund or Welfare Fund not permissible to invest

Investments

Minimum: Rs 200 and in multiples there of

Maximum: There is no upper limit

Interest rate of 8.20 per cent to 8.50 per cent depending on the

tenure of the deposit. Interest is payable annually but calculated

quarterly

Tenure is 1,2,3 or 5 years


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Duration & Rate of interest of POTD

One year 6.25%

Two year 6.50%

Three year 7.25%

Five year 7.50%

Income Tax Benefit on Time DepositAmount invested in 5years POTD, along with PPF/LIC/NSC/ULIP, etc. upto amaximum of Rs. 1,00,000 is eligible for deduction u/s 80C. In case of depositunder joint holding, deduction u/s 80C shall be available to the first holder.


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Thank you

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