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Senior Citizen Saving Scheme

Senior Citizens Savings Scheme (SCSS) is a Government scheme for Indian citizens over the age of 60. Introduced in 2004, this scheme gives a quarterly interest pay-out making for a steady income stream for the retired.

The account matures in five years and can be extended by three years, only once. The interest rate on this scheme is higher than normal bank deposits and is announced by the Ministry of Finance periodically.

You can subscribe to this scheme in private and public sector banks and also in Indian post offices. The terms and conditions are the same everywhere as it is a Government scheme administered by these entities.

What are the benefits of the Senior Citizens Savings Scheme?


Safe and secure

SCSS is a government savings product; hence the principal and interest are fully safe.


Better returns

The plan has a higher interest rate than savings account or fixed deposits, and hence is beneficial to senior citizens.


Premature withdrawal

In case of an emergency, you can withdraw the money before maturity with a penalty.


Tenure extension

By default, the term period is five years. At the end of the tenure, you can extend it once by three years.


Simple and easy

Opening an SCSS account is very easy. It can be opened in any of the banks and post offices in India. The account is transferable all across India.


Tax benefits

The principal amount deposited in this account is eligible for tax deductions up to the limit of Rs. 1.5 Lakh. The interest from it are taxable and subject to tax deduction at the source as well.


Principal amount

You can invest in multiples of Rs.1,000 in this scheme, and the cap is Rs.15 lakh. You can have multiple SCSS accounts with this total limit.

Features of the Senior Citizen Savings Scheme

The returns received through the account are constant as the rate of interest is fixed for the tenure.
If the deposit amount is less than Rs.1 lakh you can deposit it in cash. If it is more than that, then it has to be by cheque or Internet banking. The maximum deposit under this scheme is capped at Rs. 15 lakh.
The account holder can register a nominee while opening the account. If the account holder passes away before the maturity period, then the proceeds are given to the nominee.
Senior Citizen Savings Scheme is historically known to provide the customers interest at rates that are on par with other excellent investment options in the market.

Premature withdrawal

Premature withdrawal is allowed during emergencies with a penalty of 1.5 per cent of the withdrawn amount if done in less than two years from the date of opening the account and 1 per cent if between two and five years from the date of opening the account.

Eligibility to open an SCSS account

The following are eligible to open an SCSS account,

  • Indian citizens of age 60 or more
  • Individuals who have chosen the Voluntary Retirement Scheme (VRS) and are in the age between 55 and 60 can open an SCSS account within one month of receiving the retirement benefits and up to the limit of the retirement benefits or Rs.15 lakh, whichever is lower.
  • Ex-servicemen who retire and are above the age of 50 years
  • NRI are not eligible for this scheme
Documents required for SCSS

The following documents are to be submitted to open an SCSS account,

  • Passport size photographs (two)
  • Form A
  • Identity proof like Passport and PAN Card
  • Address proof like Aadhar card and utility bills
  • Age proof like Birth Certificate and Voter ID Card
How to buy

SCSS account openings in banks

  • SCSS accounts can be opened in public and private banks and also in Indian post offices. There are certain benefits in opening SCSS accounts in banks.
  • Account statements are emailed to you, and you can receive a hard copy by post as well.
  • 24*7 support option through the mobile banking service.
  • The interest amount is credited directly to the depositor’s savings account in the same bank.
SCSS account openings in a post office

You can visit a post office and fill in and submit the required forms with the supporting documents.  If you are opening the account in a bank, you can download and fill a form from the bank’s website and submit with supporting documents at the bank’s branch.