Senior Citizen Savings Scheme (SCSS)

Updated on September 21, 2023 , 87502 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 SCSS Scheme

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 Sr Citizen Saving Scheme at any Post Office across India. There are also many national and private banks that facilities the scheme.

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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 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).

SCSS Interest Rate 2023

The scheme offers a quarterly interest payment while minimizing your Taxes. The rate of interest is reviewed quarterly by the Ministry of Finance and subject to periodic change. The SCSS interest rate for April to June 2020 has been set at 7.4%. The quarterly interest of SCSS is payable on 1st working day of April, July, October and January.

The following are the historic interest rates of the SCSS account-

Time Period	Interest Rate (% annually)
April to June (Q1 FY 2020-21)	7.4
Jan to March (Q4 FY 2019-20)	8.6
Oct to Dec 2019 (Q3 FY 2019-20)	8.6
Jul to Sep 2019 (Q2 FY 2019-20)	8.6
Apr to Jun 2019 (Q1 FY 2019-20)	8.7
Jan to March 2019 (Q4 FY 2018-19)	8.7
Oct to Dec 2018 (Q3 FY 2018-19)	8.7
Jul to Sep 2018 (Q2 FY 2018-19)	8.3
Apr to Jun 2018 (Q1 FY 2018-19)	8.3
Jan to March 2018 (Q4 FY 2017-18)	8.3
Oct to Dec 2017 (Q3 FY 2017-18)	8.3
Jul to Sep 2017 (Q2 FY 2017-18)	8.3
Apr to Jun 2017 (Q1 FY 2017-18)	8.4

Data Source: National Savings Institute

Senior Citizen Saving Scheme – Tenure & Withdrawal

Tenure

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.

Withdrawal

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 Post Office Senior Citizen 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 74. percent per year
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

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

Apart from the post offices, the SCSS account is also offered at selected Public and Private sector banks mentioned below:

Authorized Banks for 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
IDBI 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
ICICI Bank	-

Disclaimer:
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.