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Wednesday, February 8, 2023

Will Account Holder’s Death Trigger Account Closure Under Senior Citizens’ Savings Scheme?

New Delhi: The Ministry of Finance on Thursday has clarified that the death of an account holder under the Senior Citizens’ Savings Scheme (SCSS) does not get trigger the premature closure of the account. The ministry added that premature account closure happens applicable only when the account holder requests for the account’s closure before the maturity period.Also Read – Senior Citizen Savings Scheme: With 7.4% Interest Rate, Retirees Can Get Guaranteed Return. Here’s How

Also, a penalty is levied as per rule 6 of the SCSS, in such cases of premature closure of an account, the ministry said in a statement. Also Read – Senior Citizens Saving Scheme Offers 7.4% Return For People Above 60. Check Eligibility, Maturity Details

This clarification from the ministry comes amid reports that operating agencies are closing down the SCSS accounts of individuals upon their deaths by treating it as premature closure. Also Read – Government Reduces Interest Rates For Saving Schemes by 0.2 Per Cent

In those cases where the SCSS account holder(s) passes away and the account is being closed on request of the nominee or legal heir, the rate of interest as applicable on SCSS scheme shall be paid till the date of demise of the account holder. Thereafter, the interest rate applicable on post office savings accounts shall be paid from the date of demise of the account holder till the date of final closure of the account, the Finance Ministry said.

(With IANS inputs)

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