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Senior Citizen Savings Scheme Features, Benefits, Eligibility and More

The Senior Citizen Savings Scheme (SCSS) in India is a savings plan for people aged 60 and above, providing an interest rate of 8.20% per year.

by P Nandhini

Updated Apr 04, 2024

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Senior Citizen Savings Scheme Features, Benefits, Eligibility and More

Senior Citizen Savings Scheme

The Senior Citizen Savings Scheme (SCSS) is a special scheme that is designed to help elder people in India save their money for their retirement. People who are 60 years old or above can put their savings for a fixed period of five years in this scheme.

It helps them to save money after their retirement. This scheme offers an interest rate of 8.20% per year, which is quite good compared to other savings options. In this scheme, seniors can deposit a maximum amount of Rs.30 lakh.

The major benefit of this SCSS scheme is that seniors can withdraw their cash early if required, but charges may apply for premature withdrawal. Overall, SCSS gives a great opportunity for seniors to secure their financial future.

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What Are the Features of Senior Citizen Savings Scheme?

Number of Accounts: People can have more than one account, either independently or mutually with their spouse.

Nominations: You can nominate somebody to get the money if needed.

Maturity Period: The scheme will last for 5 years and can be expanded for 3 more years upon application within one year of maturity.

Transferability: SCSS accounts can be easily transferred between banks and post offices.

Deposit Range: Deposits can be made from Rs.1,000 to a maximum of Rs.30 lakh. It is payable in cash or by cheque.

Premature Withdrawal: Withdrawal is permitted after one year, but charges apply after one and two years.

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What Are the Eligibility Criteria for the Senior Citizen Savings Scheme?

  • People must be 60 years of age or above to open an SCSS account.
  • Those aged between 55 and 60 years old, who have retired can also apply for an SCSS account.
  • People who retired before the implementation of SCSS rules are also eligible.
  • Non-resident Indians (NRIs) are not suitable to open an SCSS account.
  • Hindu Undivided Families (HUF) are not eligible to open an SCSS account.
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Senior Citizen Savings Scheme Interest Rate

The Senior Citizen Savings Scheme  (SCSS) offers an interest rate, which is like a reward for keeping your cash in this scheme. As of now, the interest rate for SCSS is 8.20% per year. This indicates if you put your money in the SCSS account, the government will give you this percentage of your total money every year as extra money.

It's a great deal since it's higher than what you might get from other reserve funds options like normal bank accounts. So, if you're an elder person who looking to save money for the future, then the SCSS interest rate can help your savings develop quicker.

Senior Citizen Savings Scheme Benefits

  • SCSS is simple to open at any post office or authorized bank in India, making it available to elder people all over the country.
  • It's supported by the government so it is considered a safe and secure way to save money.
  • The scheme gives a high interest rate, helping seniors develop their savings faster.
  • The SCSS account lasts for five years, with the option to expand it for another three years, giving seniors a long-term savings option.
  • Accounts can be easily transferred anywhere in India, offering flexibility to elders who may move.
  • Seniors can claim income tax deductions under section 80C of the Indian Tax Act, up to Rs.1.5 lakh, reducing their tax burden.
  • Premature withdrawal is allowed after one year, giving financial flexibility in case of emergencies.

What Are the Documents Required to Open an SCSS Account?

  • Two passport-size photos.
  • Identity proof such as a Passport or Permanent Account Number (PAN) Card.
  • Address proof, such as an Aadhaar Card or phone bill.
  • Age proof such as Birth Certificate,  Voter ID, PAN Card, Senior Citizen Card, or Passport.
  • Fill out and submit Form A completely.
  • Ensure all documents submitted are self-attested for genuineness.

Which Banks Offer SCSS?

S. No.

Bank Name

1

Indian Bank

2

Indian Overseas Bank

3

Bank of India

4

ICICI Bank

5

Union Bank of India

6

State Bank of India

7

Corporation Bank

8

Punjab National Bank

9

Bank of Baroda

10

Central Bank of India

11

IDBI Bank

12

UCO Bank

13

Canara Bank

14

Bank of Maharashtra

15

Dena Bank

How to Open an SCSS Account?

  • Go to the closest branch of a bank or post office that offers SCSS.
  • Ask for an SCSS application form and fill in all the needed details.
  • Attach photocopies of basic documents such as identity proof, address proof, and age proof.
  • Submit the filled application form along with the required documents and deposit the money to the bank staff.
  • The bank staff will process your application and deposit, and your SCSS account will be opened.
  • You will get a passbook or account statement containing information about your SCSS account, once the account is opened.
  • You can begin depositing money into your SCSS account and enjoy the benefits it offers for your savings and retirement.
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