Senior Citizens Savings Scheme in India – Eligibility, Features and Tax Benefits

Senior Citizens Savings Scheme (SCSS) Scheme: Basic Information

SCSS or Senior Citizens Savings Schemes is an investment scheme initiated by the Indian government to support the senior citizens after retirement. This scheme can be obtained by senior citizens of 60 years and above in India. This is a long term and cost-effective saving scheme that comes with some wonderful features along with matchless security.

SCSS Tenure	5 years
SCSS Interest Rate	7.4% p.a.
SCSS Investment Amount Required	Maximum amount that can be deposited is Rs.15 lakh
Does SCSS allow Premature Withdrawal	Yes

What is Senior Citizens Savings Scheme (SCSS)?

The Government of India initiated the scheme of SCSS to secure the senior citizens of the country with a regular income post retirement. This scheme comes with numerous benefits such as tax deductions. Also, this is a secure plan that you can invest in and it is available with an interest rate of 7.4% at present as compared to earlier interest rate of 8.6%. Further, the scheme allows premature withdrawal of money if any need arises.

The SCSS scheme is a feature packed scheme that ensures security of individuals investing in the plan. This is a good savings option to consider for a long term investment. This scheme can be availed from any Indian post office as well as from certified banks in India.

How to open a Senior Citizens Savings Scheme (SCSS) Account

Let us give you the idea on how to open an SCSS account, and what all documents you would require for the same. To open an account of Senior Citizens Savings Schemes you must visit a post office or a bank that is located close to you. There you have to submit an application form pertaining to the SCSS account as well as the necessary KYC documents required to be submitted. Also, you have to submit a cheque of the amount that you want to deposit in the SCSS account, and provide a nominee name that you want for your account.

Eligibility for Senior Citizens Savings Scheme (SCSS) account

• It is required for a citizen to be 60 years and above to open a SCSS account. So, this plan caters to the Senior citizens of 60 years and beyond.
• People who are between 55 to 60 years old and who have adopted retirement on superannuation can also apply to open an account of SCSS.
• Further, people who have reached the age of 55 years and who retired before SCSS rules were executed are also eligible to apply for SCSS scheme.
• SCSS also allows retired personnel of Defense Services to apply for the scheme without any age consideration. However, for the defense personnel’s there are some conditions that needs to be met.
• SCSS doesn’t allow NRI or the Non-Resident Indians living outside India to avail the facility of opening an account.
• Further, HUFs or Hindu Undivided Families is another category not allowed to open an account of SCSS.

Documents required for Senior Citizens Savings Scheme (SCSS) account

Below are the key documents required to present during the time of SCSS account opening.

• Passport-size photos – 2 nos.
• Duly filled form
• ID proof (Passport, PAN Card)
• Address proof (Aadhaar Card, telephone bill)
• Certificate to confirm age (PAN Card/ Voter ID/Birth Certificate/Senior Citizen Card/Passport)
• All the above documents should be self-attested

Interest Rate on Senior Citizens Savings Scheme (SCSS)

The interest rate at which SCSS is available right now is 7.4%. SCSS interest rate was  earlier fixed at 8.6%. However, as compared to FDs or fixed deposits and savings accounts, you receive better returns on Senior Citizen Savings Scheme. While paying the interest for the first time, you can make the payment on the dates as mentioned below:

• 31st March,
• 30th September, and
• 31st December

Later in the scheme, you can make the payments of the interest on dates:

• 31st March
• 30th June
• 30th September, and
• 31st December

For quarterly interest payment: pay in April (initial working days), and in July, October, and next year January. For quarterly payments on interest, you can use the post office with Core Banking facility.

Interest Rates for the senior citizen saving scheme:

Fiscal Year	ROI p.a. (%)
January to March 2025 (Q4 FY 2024-25)	8.0
October to December 2024 (Q3 FY 2024-25)	8.0
July to September 2024 (Q2 FY 2024-25)	8.0
April to June 2024 (Q1 FY 2024-25)	8.0
January to March 2024 (Q4 FY 2023-24)	8.0
October to December 2023 (Q3 FY 2023-24)	8.0
July to September 2023 (Q2 FY 2023-24)	8.0
April to June 2023 (Q1 FY 2023-24)	8.0
January to March 2023 (Q4 FY 2022-23)	7.4
October to December 2022 (Q3 FY 2022-23)	7.4
July to September 2022 (Q2 FY 2022-23)	7.4
April to June 2022 (Q1 FY 2022-23)	7.4
January to March 2022 (Q4 FY 2021-22)	7.4
October to December 2021 (Q3 FY 2021-22)	7.4
July to September 2021 (Q2 FY 2021-22)	7.4
April to June 2021 (Q1 FY 2021-22)	7.4

Features of Senior Citizens Savings Scheme (SCSS)

The main features of the Senior Citizens Savings Scheme are mentioned below:

• Maturity: The period of maturity for SCSS is 5 years, which can be extended for 3 years by processing an application. You can close the account without any charges once it expires.
• Nominations: The account holder can add nominee while or after opening the account.
• Accounts: You can open more than a single account or you can open joint account as well. But for joint account you must open it jointly with your spouse.
• Amount: You are allowed to deposit amount only once in the SCSS account, and it can be in multiples of one thousand rupees. However, 15 lakh rupees is the maximum amount that can be deposited in a SCSS account.
• Account Transfer: You can transfer the account to post office from bank and to bank from post office.
• Premature withdrawal: Premature withdrawal from the account is permitted after one year of the account opening by paying a minimum charge depending on the year of the SCSS scheme.

Tax Benefits of Senior Citizens Savings Scheme (SCSS)

• This saving scheme for senior citizens permits tax deductions of up to 1.5 lakh rupees on investments as per Section 80C.
• If the interest created is more than one thousand rupees per annum, the deduction of tax is done at the source.

Banks offering Senior Citizens Savings Scheme (SCSS) facility

• ICICI Bank
• Vijaya Bank
• Union Bank of India
• UCO Bank
• Syndicate Bank
• Indian Bank
• Punjab National Bank
• IDBI Bank, etc.