Senior Citizen Saving Scheme (SCSS)


The funding product which I will probably be speaking about on this article will meet all of your requirement as a senior citizen.

It’s referred to as as “Senior Citizen Saving Scheme”. It is likely one of the most secure funding merchandise as a result of it’s sponsored by the Authorities of India.

Senior Citizen Financial savings Scheme (SCSS) is a government-sponsored financial savings instrument for people above the age of 60. It is likely one of the most secure saving instrument for senior residents, as a result of it’s a government-owned product and there’s no threat of the capital loss. The aim of this scheme is to offer a gradual and safe supply of revenue to senior residents for his or her post-retirement part.

The fundamental requirement a senior citizen will need from his/her funding is 2 basic items – security and common revenue. The Senior Citizen Financial savings Scheme (SCSS) meets these two necessities, and also you get the tax profit underneath part 80C on the quantity invested.

People can apply for this scheme from Put up Workplaces, Public and Non-public Banks. The present price of curiosity this scheme is providing is 7.4% (it modifications infrequently). Each the spouses can open a single account and joint accounts with one another. A number of withdrawals from an account won’t be permitted.

The rate of interest underneath this scheme is revised each quarter (Three months) which fits to Four occasions in a yr. The rates of interest are decided relying on the financial circumstances resembling inflation and many others.

2018 – 2019 (Q1) 8.3%
2018 – 2019 (Q2) 8.3%
2018 – 2019 (Q3) 8.7%
2018 – 2019 (This autumn) 8.7%
2019 – 2020 (Q1) 8.7%
2019 – 2020 (Q2) 8.6%
2019 – 2020 (Q3) 8.6%
2019 – 2020 (This autumn) 8.6%
2020 – 2021 (Q1) 7.4%


b) Minimal and Most Deposit Allowed underneath this Scheme –

The minimal contribution a senior citizen could make on this scheme is Rs. 1,000 and a most deposit of Rs. 15 Lakh may be made.

For instance, if Mr Sharma receives Rs 13 Lakh as a retirement profit, then he can make investments as much as that quantity within the scheme. This clause applies no matter whether or not the account is held individually or collectively. Nonetheless, one can solely open a joint account together with his/her partner.

However, if a person holds a number of accounts underneath this scheme, then the overall quantity deposited in all such accounts shall not exceed the utmost restrict of Rs 15 Lacs.

c) Tenure of this Scheme –

The maturity interval for the SCSS scheme is 5 years. Nonetheless, it may be prolonged for an additional Three years, successfully citing the overall interval to eight years. So as to lengthen the tenure by Three yrs, the person must submit Type B after duly filling it. An extension within the tenure will probably be allowed solely as soon as. As soon as the extension is authorised, the rates of interest would be the relevant quarterly foundation.

As an example, Ms Sita has deposited Rs. 7 Lakh underneath SCSS in April 2014, when the rate of interest supplied was 9.3%. Nonetheless, when she prolonged this scheme in April 2020, the rate of interest she was eligible to earn stood at 8.4%.

d) Untimely Withdrawal and Closure –

A person can withdraw prematurely from their account underneath this Scheme solely after one yr of opening the account. Nonetheless, for any cause, if a person closes their account earlier than the completion of two years, 1.5% of the deposited quantity will probably be deducted as penalty.

Untimely closure of the account is allowed with some penalty. If the account is closed after the primary yr and earlier than the tip of the second yr, an quantity equal to 1.5 per cent of the deposit shall be deducted as penalty. If the account is closed on or after the second yr, an quantity equal to 1 per cent of the deposit shall be deducted.

As an example, if Mr Shah deposits Rs. 5 Lakh in Senior Citizen Financial savings Scheme on 1st March 2018 and closes it on sixth February 2020, he must bear a penalty of Rs. 7500. However, if the investor is deceased earlier than the maturity of their account, no penalty will probably be charged.

e) Mode of Funding –

The mode of funding underneath this scheme will probably be both money or cheque. If the funding quantity is beneath Rs 1 Lac then the quantity may be invested by money. But when the funding quantity exceeds Rs 1 lacs then the funding may be achieved solely by cheque.

f) Capital is Safe –

As you all know that this scheme is solely ruled by the Authorities of India that’s the reason the capital invested is totally secured underneath any circumstances.

g) Curiosity Payout –

As we all know that Curiosity is calculated on a quarterly foundation, the curiosity will probably be credited to the account each quarter, on 1 April, 1 July, 1 October, and 1 January. If the curiosity payable each quarter is just not claimed by an account holder, such curiosity shall not earn extra curiosity.

h) Nomination Facility –

On the time of opening the account, the senior residents can even connect nominee to this account in order that if one thing occurs to the senior citizen then his/her cash will go to the nominee.

Taxation of SCSS –

Investments made underneath SCSS are eligible for tax deduction underneath part 80C of the Revenue Tax Act, 1961. Based on the present guidelines, in case your curiosity earnings from SCSS are greater than Rs 50,000 in a single fiscal yr, you’re liable to pay TDS (Tax Deducted at Supply) for the curiosity earned.

Eligibility Standards of SCSS –

a) A person who’s a citizen of India can open this account in a person capability or collectively with a partner.

b) Non-residential Indians (NRIs) or a Particular person of Indian Origin (PIOs) can not make investments on this scheme. Additionally, Hindu Undivided Household (HUFs) don’t qualify for this scheme.

c) As it is a senior citizen financial savings scheme, so any resident of India aged 60 years or above is eligible to open an account underneath this scheme. Nonetheless, there are few exceptions to the age bar:

  • Retirees within the age group of 55-60 years who’ve opted for Voluntary Retirement Scheme (VRS) or Superannuation are eligible to avail the scheme in the event that they apply for a similar inside one month of gaining their retirement perks.
  • Retired defence personnel can avail this scheme no matter their age, supplied they fulfil all different circumstances.

d) Nomination underneath this scheme may be achieved solely in favour of resident Indians.

Paperwork required for opening the SCSS Account –

a) Proof of ID and tackle (any one of many following) –

  • Aadhaar card
  • Passport
  • Driving licence issued by Regional Transport Authority
  • Voter ID card
  • Job card issued by MNREGA signed by State Authorities officer

Observe – The above doc must be self-attested.

b) Further documentation if the investor is lower than 60 years –

  • Certificates from the employer indicating the main points of retirement on superannuation or in any other case, retirement advantages, employment held and interval of such employment with the employer
  • Proof of date of disbursal of retirement advantages (the date of opening of an account underneath this Scheme must be inside one month of the date of receipt of the retirement advantages)

c) Along with the above paperwork, PAN card is obligatory.

Tips on how to Open an Account underneath the Senior Citizen Financial savings Scheme?

An SCSS account may be opened with a submit workplace or any of the personal or public banks in India. The process for each is comparable, and is talked about beneath  –

Step #1 – Go to your nearest financial institution department or Put up workplace department

Step #2 – Submit the Duly crammed up Type A

Step #3 – Submit the unique and photocopies of all the required paperwork talked about above, broadly tackle and identification proof.

Step #4 – Submit the age proof with all of the above paperwork.

Checklist of few public sector banks which provides to open SCSS Account to their senior citizen prospects –

You’ll be able to click on on the beneath banks to see the type of SCSS.


So this was all that I needed to share about Senior Citizen Saving Scheme. If I’ve missed out on any level then you’ll be able to spotlight within the remark part.

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