fincash logo SOLUTIONS

Fincash » Government Schemes » Senior Citizen Savings Scheme

Senior Citizen Savings Scheme (SCSS)- An Overview

Updated on October 15, 2019 , 3524 views

Senior Citizen Savings Scheme (SCSS) was launched in 2004 by the government of India in order to provide a guaranteed return to the senior citizens by means of safe investment. This scheme offers risk-free investment to the senior citizen. In order to get a regular income, Investing in SCSS is a very good opportunity for people who are above 60 years. It is a good long-term saving option that offers security at the old age.


Eligibility for Senior Citizens Saving Schemes in India

  • In order to subscribe this scheme, an individual should to of 60 years of age & above
  • On superannuation, a retired person of 55 years old & above can open this scheme
  • Retired defence personnel of age above 50 years is eligible to open the account
  • HUF & NRI are not eligible to open SCSS account

Documents Required for Opening SCSS Account

Following are the documents required to open SCSS account:

  • Age proof
  • Passport
  • Senior Citizen Card
  • Birth certificate issued by MC/Gram Panchayat/District office of registrar of births and death
  • PAN card
  • Voter ID card
  • Ration card
  • Date of birth certificate from the school
  • Driving license

One can open Senior Citizen Saving Scheme at any post office across India. There are also certain national and private banks that facilities the deposit of SCSS scheme.

Ready to Invest?
Talk to our investment specialist
By submitting this form I authorize to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

Sr Citizen Saving Scheme- Investment Amount

In SCSS account, a minimum investment amount should be of INR 1,000 and a maximum could be INR 15 lacs. The scheme allows only one deposit in the account and this shall be in multiples of INR 1,000. The amount invested in this scheme cannot exceed the money that has been received on retirement. Thus, an individual can invest either INR 15 lacs or the amount received as a retirement benefit (whichever is lower).

Even though the deposit is limited to only one time, a person can open multiple SCSS accounts, which is not in the case of PPF (wherein a person can only open one PPF account).

Senior Citizen Saving Scheme Interest Rate

SCSS offers a quarterly interest payment while minimizing your taxes. The current SCSS interest rates for the year 2018 is 8.3 percent per year. The quarterly interest of SCSS is payable on 1st working day of April, July, October and January.

Senior Citizen Saving Scheme – Tenure & Withdrawal


The tenure of SCSS is of 5 years. However, there is an option to extend the scheme further for three years. In order to extend the scheme, one has to submit the dully filled Form B (after the completion of 5 years), which is regarding the extension of the scheme. Such extension accounts can also be closed after a year without paying any penalty.


The premature withdrawals are allowed, but only after one year of account opening. On the account closure, before the end of two years, 1.5 percent of the deposit shall be deducted as pre-mature withdrawal charges. And, on the closure of the account after 2 years an amount equal to 1 percent of the deposit shall be deducted as charges.

No charged or penalty is levied for premature closure of the account in the event of death.

Benefits of this Government Scheme for Senior Citizen

There are multiple benefits of opening a Senior Citizen Savings Scheme:

  • Since it is a government sponsored scheme, it is the safest and reliable investment option
  • The process of account opening is simple. It can be opened at any post office across India and also with authorized banks
  • Nomination facility is available at the time of opening an account. One has to submit an application of Form C, which is also accompanied by the passbook to the Branch. The nomination can be made for one or more persons.
  • The SCSS account offers a good return of 8.3 percent per year (the interest rate is as per 2018 announcements)
  • The scheme offers efficient tax benefits. A tax deduction up to INR 1.5 lakh can be claimed under Section 80C of Indian Tax Act 1961.

Tax Benefits of Senior Citizen Saving Schemes

The interest earned on the deposit is fully taxable and tax is deducted at source (TDS) as per applicable Income Tax Rules. Although, is the income is not taxable, an individual has to provide 15H or 15G form so that no tax is deducted at source.

Senior Citizen Scheme in Banks

Following are the authorized banks where you can open an SCSS account:

Authorized Banks for SCSS account
Andhra bank
Bank of Maharashtra
Bank of Baroda
Bank of India
Corporation Bank
Canara Bank
Central Bank of India
Dena Bank
Indian Bank
Indian Overseas Bank
Punjab National Bank
State Bank of India
State Bank of Mysore
State Bank of Bikaner and Jaipur
State Bank of Patiala
State Bank of Travancore
State Bank of Hyderabad
Syndicate Bank
UCO Bank
Union Bank of India
Vijaya Bank
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?
Rated 5, based on 1 reviews.