Senior Citizens Saving Scheme
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument for people aged 60 and above offering a high interest rate of 7.4% per annum with quarterly payouts — ideal for regular retirement income. You can invest between ₹1,000 and ₹15 lakh (or the amount received as retirement benefit, whichever is lower) for a 5-year tenure, extendable by 3 more years. Open an account at any post office or authorized bank.
About This Scheme
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument for people aged 60 and above offering a high interest rate of 7.4% per annum with quarterly payouts — ideal for regular retirement income. You can invest between ₹1,000 and ₹15 lakh (or the amount received as retirement benefit, whichever is lower) for a 5-year tenure, extendable by 3 more years. Open an account at any post office or authorized bank.
Full official description
The Senior Citizens’ Saving Scheme is a retirement benefit program by the Government of India. Individuals over 60 years can opt for the SCSS scheme by investing by making an individual or joint investment. In addition, this scheme provides tax benefits. In SCSS, the installment amount ranges between ₹1,000 and ₹15 lakhs. This amount is constricted to the retirement benefits. One must deposit it in the Senior Citizen Scheme account within a month from receiving retirement benefits from his/her employer. Moreover, if individual deposits more than the given amount, the additional funds get refunded to the account holder. One can extend the scheme for 3 more years from its date of maturity. The Interest Rate is 7.40% per annum (Q2 FY 2022-23). The Tenure is 5 years (with an option to extend it for 3 more years). The Minimum Investment Amount is ₹1,000. The Maximum Investment Amount ₹15,00,000 or the amount received on retirement, whichever is lower.
Benefits
- 7.4% interest per annum, paid quarterly (1st of April, July, October, January)
- Minimum investment ₹1,000; maximum ₹15,00,000 or retirement benefit amount (whichever is lower)
- 5-year tenure, extendable by 3 more years
- Principal investment eligible for tax deduction up to ₹1.5 lakh under Section 80C
- Premature closure allowed: 1.5% penalty if closed before 2 years; 1% if closed after 2 years
- Nomination facility available for the account
Who Can Apply (Eligibility)
- Indian citizens aged 60 years and above
- Retired individuals aged 55–60 who have opted for Voluntary Retirement Scheme (VRS) or Superannuation (must invest within one month of receiving retirement benefits)
- Retired defense personnel aged 50–60 (must invest within one month of receiving retirement benefits)
- HUFs (Hindu Undivided Families) and NRIs are not eligible
Exclusions
Hindu Undivided Family (HUFs) and Non-resident Indians (NRIs) are not eligible to invest in Senior Citizen Savings Scheme.
How to Apply
Visit your nearest bank branch or post office and collect the application form. Submit the duly filled-up form along with the self-attested copies of the required documents.
One can open an SCSS account online if his/her bank offers this facility. Banks offering Senior Citizens’ Savings Scheme include the following: State Bank of India, Bank of Baroda, ICICI Bank, Bank of India, Corporation Bank, Punjab National Bank, UCO Bank, Allahabad Bank, Syndicate Bank, Union Bank of India
Frequently Asked Questions
How Can I Open A Senior Citizen Savings Schemes Account Online?
Online application facility is not available for SCSS. In order to open a SCSS account, the customer must visit the post office or bank branch and fill up the related form. The same form should be attached with KYC documents, age proof, ID proof, Address proof and cheque for deposit amount.
Is 80C Applicable On Senior Citizen Savings Schemes?
Yes, investments made in SCSS are eligible for income tax deduction benefits under the Section 80C of Income Tax Act, 1961.
Can I Open A Senior Citizen Saving Account With SBI Bank?
Yes, any eligible candidate can open a senior citizen savings account with banks such as the State Bank of India. However, according to SBI's guidelines, a depositor can hold two or more SCSS accounts only if the deposits in all accounts taken together do not exceed Rs.15 lakh.
What Is The Maximum Age Of Senior Citizen Saving Account Opening?
Any individual, above the age of 60, can open Senior citizen savings account accompanied by all the required documents.
What Is The Eligibility Criteria Of Joint Senior Citizen Saving Account?
While opening a joint SCSS account, the age of first depositor is supposed to be above 60 years. However, there is no age limit for the second applicant. The joint account can be opened only with the spouse. However, the entire amount in a joint account will be attributable only to the first account holder.
Can Both The Spouses Open Separate Accounts?
Yes, individual accounts can be opened as well, provided the deposit limit is a maximum of Rs.15 lakh. Of course, it has to adhere to the rules of the scheme.
Is There Any Income Tax Rebate / Exemption?
Yes, tax deduction of up to Rs.1.5 lakh can be claimed under Section 80C of the Indian Tax Act, 1961.
Is TDS Applicable To The Scheme?
Yes if the interest exceeds Rs.10,000 per annum, TDS is applicable. In this scheme, interest payments are no exemption to deduction of tax at source.
Any Minimum Limit Has Been Prescribed For Deduction Of Tax At Source?
As per government regulations, tax has to be deducted at source as per the minimum balance.
Can A Person Holding A Power Of Attorney Sign For The Nominee In The Nomination Form?
No, a person holding a Power of Attorney cannot sign in place for the nominee in the nomination form.
In Case Of A Joint Account, If The First Holder / Depositor Expires Before Maturity, Can The Account Be Continued?
Yes, the nominee can hold the account of the expired depositor in case of a death, provided it pertains to the SCSS Rules.
Is There Any Fee Prescribed For Nomination And / Or Change / Cancellation Of Nomination?
No fee is charged.
Can An Account Holder Obtain Loan By Pledging The Deposit / Account Under The SCSS, 2004?
Periodic withdrawals for loans are not possible in this scheme as it defies the very nature of the scheme.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- KYC Documents:
- Aadhaar Card, Voter ID Card, PAN Card, Passport
- Utility Bills:
- Telephone bill, Electricity bill
- Senior Citizen Card or Birth Certificate (Case Specific)
- 2 passport-size photographs