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.
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.
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.
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.