SCSS account extension rules for retirees

Retirees can now extend their Senior Citizens Savings Scheme (SCSS) account multiple times, following an amendment notified in November 2023, livemint.com reports. The scheme has a five-year initial maturity, after which account holders must submit a request for extension within one year of maturity. Without a proper request, the account stops earning the SCSS interest rate.

The interest rate during the extended period is linked to the prevailing SCSS rate on the date the extension is approved, not when the account was opened. Currently, SCSS offers 8.2% per annum, reviewed quarterly by the government. An application for extension must be made within one year from maturity; once approved, it is effective from the maturity date itself, ensuring no gap in interest payments.