Individuals aged 60 and above can open a Senior Citizen Savings Scheme (SCSS) account at the country’s post offices and bank branches. While most people might be aware of the attractive interest rates it offers, currently 8.2 per cent, they may be unclear of the options available for opening a joint or multiple SCSS accounts. So, here is what the guidelines say:

Opening A Joint SCSS Account

Individuals can open a joint SCSS account only with their spouses. However, the eligibility will be determined by the age of the first applicant and not the second claimant to the account. Also, the entire invested amount will be attributed to the first applicant or depositor, so the second applicant’s share in the joint account does not arise, according to the State Bank of India website.

The spouses can deposit a maximum of Rs. 15 lakh each, provided both are individually eligible to invest under relevant provisions of the SCSS rules. Furthermore, if the total interest in the SCSS account exceeds Rs.50,000 in a financial year, tax deducted at source (TDS), at the prescribed rate, will apply to the total interest paid.

However, do joint accounts allow nomination? Nomination can be made in a joint account. However, the joint holder will be the first person permitted to receive the money if the depositor dies, and the nominee’s claim will arise only after the death of both joint holders.

Suppose the individual does not close the account on maturity or extend it for three years as permitted within a year. In that case, the post-maturity interest will be deposited to the account as per the Post Office Savings Accounts rules. However, the excess interest paid to the SCSS account (where higher rates apply) post-maturity will be deducted. Also, an individual is not required to open a new savings account to get the interest credited. There is also no restriction on the depositors to open multiple accounts within the overall ceiling of Rs. 15 lakh.

Can A depositor Open More Than One SCSS Account?

A depositor can operate more than one account, provided the deposits in all the accounts don’t exceed the maximum limit and the accounts are not opened in the same office, according to the SBI website.

The Senior Citizen Savings Scheme (SCSS) is a popular small savings post-retirement, and its interest rates are revised quarterly.