The Finance Ministry has made seven important changes in the popular Senior Citizens Savings Scheme (SCSS), including allowing more people to invest, more time for retirees, stricter penalties.

The Center has relaxed seven key norms of the Senior Citizens Savings Scheme. Now a relaxation of three months has been given for opening an account in the Senior Citizens Savings Scheme instead of one month. Additionally, account holders can now extend the account for any number of blocks, with each block lasting for three years. Senior Citizens Savings Scheme (SCSS), which is designed for individuals aged 60 years or employees above 55 years and below 60 years, offers 8.2 per cent interest per annum. The Department of Economic Affairs of the Finance Ministry notified the latest round of changes. Earlier, premature closure of a PPF account attracted a penalty of 1 per cent less than the rate at which deposits were made since the account was opened or expanded. With the amendment, on premature closure, interest will now be allowed at the rate of 1 per cent less than the interest being credited from time to time in the account from the beginning of the existing five-year block period. According to the notification, if premature withdrawal is made from a five-year fixed deposit account after four years from the date of account opening, the applicable interest rate will be the post office savings account interest rate. ​