Senior Citizen Saving Scheme(SCSS) is a government-backed scheme to help senior citizens plan for their retirement or have financial stability after they reach 60 years of age.
Apart from serving as a regular stream of income for senior citizens, the scheme also provides tax benefits making it an effective scheme for long-term savings.
The Senior Citizen Saving Scheme (SCSS) is a government-sponsored retirement program. The SCSS allows senior citizens living in India to invest a lump sum and receive regular income along with tax benefits.
Senior citizens can open an SCSS account in a Post Office branch or any authorized bank to get the benefits of it.
Go to your nearest post office or any authorized bank (see list below).
Request for a SCSS application form and fill in the necessary details.
Along with the form, submit the following documents -
Two passport-size photographs
Identity proof - Aadhaar card, PAN card, passport, or Voter ID
Proof of address - Aadhaar card or telephone bills
Proof of age - Birth certificate, senior citizen card, voter ID, PAN card
Post submission, deposit the money(multiples of Rs. 1000).
The bank will process your request and open an SCSS account in your name.
You can also add nominees to the account.
Which Banks Offer Senior Citizen Saving Scheme?
Senior citizens can open an SCSS account in the following banks -
Bank of Baroda
Bank of India
Bank of Maharashtra
Central Bank of India
Indian Overseas Bank
Oriental Bank of Commerce
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Union Bank of India
United Bank of India
IDBI Bank Ltd.
ICICI Bank Ltd.
Individuals who fulfill the following eligibility criteria can invest in SCSS -
An individual who is 60 years of age or older
Individuals over the age of 55 who are under the age of 60 and have retired on pension savings
Individuals who have reached the age of 55 and retired prior to the implementation of the SCSS rules
Retired defense personnel over the age of 50 and under the age of 60. The investment, however, must be made within one month of receiving retirement benefits.
However, Non-Resident Indians (NRIs) and Hindu Undivided Families (HUF) are not eligible to apply for SCSS.
The SCSS account should be opened with a minimum deposit of Rs. 1000
The government also hiked the investment limit from Rs. 110 Lakhs to Rs. 30 lakhs
The current interest rate of the scheme stands at 8%
The account matures after 5 years from the date of opening and it can be further extended up to 3 years by the depositor within a year from the date of maturity
Both spouses can open separate accounts as well as joint accounts with each other. However, the entire deposit in a joint account is only attributed to the first account holder
The depositor can nominate one or more persons as the nominee and cancel or change the nomination at any time
Multiple withdrawals from the account are not permitted
After you open an account, you will be able to receive quarterly disbursements against your deposited amount.
This government-supported scheme is very secure and reliable
The scheme allows for an extension after the expiry of the account and permits premature withdrawal
As a depositor, you can make deposits or withdraw the amount in any part of the country as the account is transferable
The simple process of opening an account at any bank or post office makes this scheme easy to access for any citizen
Individuals who invest in the scheme benefit from the high rate of interest
Additionally, depositors are eligible for an income tax deduction of up to Rs.1.10 Lakhs under Section 80C of the Indian Tax Act, 1961
While the scheme is highly beneficial to retirees, it also has a few drawbacks everyone must be aware of. The disadvantages of the Senior Citizen Saving Scheme are as follows:
The interest earned on the deposits is subject to TDS
Depositors can not invest more than Rs. 30 lakhs and any amount that exceeds this limit is deposited back into your personal account
The interest earned is deposited into the contributors’ account every quarter, preventing them from profiting from compounding
Moreover, increasing inflation can decrease the value of the investment by the time the depositor retires
Senior Citizen Saving Scheme is one of many schemes implemented by the government to make the life of retirees or senior citizens easier.
It is reliable, secure, and offers various benefits to depositors. The application process for the Senior Citizen Saving Scheme is very simple and accessible as it can be done at a bank or the nearest post office. Additionally, understand the drawbacks of the scheme before you choose to invest in it.
Yes. Spouses can hold a joint account in SCSS. However, the amount in the account will be deposited to the first depositor or applicant.
No. As of now, the process to open an SCSS account is only available offline at the bank or the nearest post office.
The depositor can open multiple SCSS accounts as long as the amount in the accounts combined does not exceed the maximum limit.
Yes. Submit Form G and the required documents at the post office to transfer the account to a bank of your choosing.
You can close your SCSS account after one year. You will be charged 1.5% of the savings and 1% if you close after 2 years.
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