The Senior Citizen Savings Scheme (SCSS) is a savings scheme for Indian senior citizens aged 60 years and above. The scheme is backed by the government and offers a higher rate of interest than most other savings schemes.
The SCSS is considered to be a safe and secure investment option for senior citizens in India. It provides a regular income stream and helps them meet their financial needs during their retirement years.
How To Open A Senior Citizen Savings Scheme Account (SCSS)?
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The SCSS account can be opened by a senior citizen at a bank or post office. To open the account, they need to ensure a minimum deposit Rs 1000 in the multiples thereof with maximum deposit of Rs 30 lakh.
There can be only one deposit in the account in multiple of Rs 1000/- maximum not exceeding Rs 30 lakh. Multiple withdrawals from an account is not permitted.
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Who Can Open A Senior Citizens Saving Scheme Account?
An individual who has attained the age of 60 years or above on the date of opening of an account or an individual who has attained the age of 55 years or more but less than 60 years and has retired under Superannuation, VRS or Special VRS, can open an account.
Retired personnel of Defence Services (excluding Civilian Defence employees) can also open an account on attaining the age of fifty years subject to the fulfilment of other specified conditions.
A depositor can open an account individually or jointly with a spouse. However, the whole amount of deposit in a joint account shall be attributable to the first account holder only.
Senior Citizen Savings Scheme Interest Rate
Interest is payable from the date of deposit to 31st March/ 30th June/30th September/31st December on 1st working day of April/July/October/January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/July/October/January.
For the quarter ending June 30, 2023, the rate of interest on the Senior Citizens Savings Scheme is 8.2%.
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The account can be closed after expiry of 5 years from the date of opening of account. The depositor may extend the account for a further period of 3 years.
Premature closure is permissible subject to certain conditions. Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.
