In the case of a joint Senior Citizens Savings Scheme (SCSS) account, where the first holder (A) and spouse (B) are named as account holders, an important query arises regarding the interest credit process. Specifically, if the SCSS interest is auto-credited to the Savings Bank (SB) account of the second holder (B), is this procedure valid?
Solution: The ownership of the deposit in a joint SCSS account rests with the first holder (A). However, the interest generated from the account can be credited to the SB account of either holder, provided one of the joint holders is also a party to the SB account.
According to SCSS rules, the interest should be credited to an account in which the first holder is a party, reflecting the ownership of the deposit. Therefore, crediting the interest solely to the SB account of the second holder (B), without the involvement of the first holder (A), does not align with the established guidelines.
This leads to the conclusion that while joint holders can receive interest in either account, the first holder must be part of the account where interest is credited. This ensures the correct attribution of funds and adherence to the SCSS rules.