Senior Citizen Savings Scheme

Senior Citizen Savings Scheme

Senior Citizen Savings Scheme (SCSS) is the government-backed plan that is offered for the residents of India aged above 60 years, the deposits get mature after 5 years from the date of account opening, the tenure can be extended for another 3 years once the deposit reached maturity. This scheme can be opened both in the private and public sectors. Unlike other schemes, SCSS also allows premature withdrawal with multiple benefits like the tax benefit, risk-free savings, gain of interest rate, and maturity returns.

Key Points

  • SCSS offers Tax Benefits
  • Lock Period - 5 years
  • Investment Amount - Maximum up to 15 lakhs
  • Premature Withdrawal - Allowed
  • Interest Rate - 7.5% p.a (May fluctuate)
  • Age - Above 60 years

What is the eligibility for SCSS?

  • The individual above age 60 are eligible
  • Individual of age 55 and retired on superannuation are also permitted
  • Retired Defence Service personnel of irrespective of age are acceptable
  • Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) not accepted

What is the process to apply for SCSS?

  • Visit Bank or Post office and get the SCSS application Form
  • Fill the application with all the required details and submit at the bank or post office.

What are the documents required for SCSS?

  • 2 Passport size photos
  • Aadhaar/PAN Copy
  • SCSS application filled form
  • Individuals with age 55 retired on superannuation required documents.

Premature closure of SCSS

  • Premature closure is possible anytime
  • If closed before 1 year- no interest will be paid
  • If closed after 2 years- 1.5% penalty is applicable to the principal amount

Bottom line

Senior Citizen Saving Scheme is a saving option for the retirees, as this offers tax benefit, interest benefit for the investor, also it allows premature withdrawal that provides the investor a good flexible investment option. Also, the scheme allows the individual to invest the minimum Rs 1000/- to a maximum of Rs. 15,00,000 with a risk-free investment option.