Is opening a new SCSS account for higher interest a smart move?

Senior Citizen Savings Scheme (SCSS)

A government deposit scheme that offers guaranteed returns to senior citizens. It has a tenure of 5 years. At present, it offers 8.2% interest.

Closing early incurs a penalty

For instance, if you close your existing SCSS account after 2 years of opening it, 1% of the deposited amount is charged as a penalty.

New account, new tenure

Opening a new SCSS account will lock in the higher interest rate of 8.2% but restarts the 5-year tenure. That means your investment period gets extended.

Our word

A new SCSS account can be beneficial, but consider the hassle and penalties for early closure. Keep your existing SCSS if you need money after the original 5-year tenure.

To get investment insights delivered straight to your inbox

Sign up now!