Senior Citizens Savings Scheme: Age, Eligibility, Interest Rate and Key Feature

Senior Citizens Savings Scheme is a savings instrument of the government. This investment option is eligible for tax deduction up to Rs 1.5 Lakh under Section 80C of the Income Tax Act, 1961.

Senior Citizens Savings Scheme

Updated January 2022 According to my experience, Senior Citizen Savings Scheme (SCSS) in India is a special savings scheme for senior citizens. Please note that the content may have changed since then, so current information needs to be verified with official information.
Here are the highlights of the 2022 Retirement Savings Plan:

  1. Fixed Rate of Interest: The rate of interest is fixed by the government and remains the same throughout the life of the investment. The interest rate is unlikely to be affected by any changes or market fluctuations in the later quarter. The interest rate for SCSS is currently fixed at 8.2 percent.
  2. Deposits: The scheme allows only one deposit. Subscribers can deposit money in multiples of Rs.1000. The maximum amount that can be invested is Rs 30 lakh.
  3. Maturity: The maturity of the program is five years. By applying within one year of the maturity of the account, it can be extended for another three years.
  4. Multiple Accounts: Subscribers can operate more than one SCSS account or open a joint account with their spouse.
  5. Early Withdrawals: Investors can make early withdrawals from their SCSS after one year of account opening.
  6. Tax Benefits: SCSS deposits are eligible for a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.

Senior Savings Program: Eligibility

  1. An SCSS account can be opened by anyone aged 60 or over.
  2. Those who are between the ages of 55 and 60 and have retired on VRS, Special VRS or supplementary pension insurance can also open an account within the program.
  3. The subscriber must be an Indian citizen.
  4. Retired defense personnel are also eligible to open an SCSS account if they fulfill other conditions.

Savings program for seniors: Interest rate

The current interest rate for senior savings is 8.20 percent. The return on investment of SCSS is higher compared to other investments like Fixed Deposits (FD). The interest amount is credited quarterly and can be withdrawn either through ECS (Electronic Clearing Service) or Auto Credit mode through post.

How to apply for senior savings?

To apply for an account, you need to visit the post office or the nearest bank branch that offers SCSS. Here’s the step-by-step process:

  1. Go to a bank or post office and ask for an SCSS application form.
  2. Fill in all necessary information like name, address, age, employment and pension details, candidate details and more.
  3. Attach all necessary documentation to the application.
  4. Hand over the application with the money to be deposited to the bank staff.

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