The Senior Citizen Savings Scheme (SCSS) is a retirement benefit program backed by the government. Senior citizens can invest a huge amount in the scheme in India, they can do it individually or jointly along with their spouse, and get regular income along with tax benefits. It is a post office savings scheme. Only senior citizens can open this account to get its benefits. They can open this account at a Post Office branch or any authorized bank that offers the service.
Features of SCSS
Senior Citizen Savings Scheme (SCSS) Particulars
Tenure 5 years
Interest Rate 8.2% p.a.
Minimum Investment Rs 1,000
Maximum Investment Rs 30,00,000
Tax Benefits Available under Section 80C up to Rs.1.5 lakh
Premature Closure Available
Nomination Facility Available
Maturity of the scheme
The maturity period of SCSS is 5 years and the maturity period can be extended for 3 more years by applying. Those account holders who want to extend the maturity period can give an application for the same in the last year.
Nominations
Nominees can be appointed only in two situations either during the opening of the account or after the account is opened.
Number of accounts
Individuals can open more than one SCSS account. They can also open another account either by themselves or they can a joint account with their spouse. Joint accounts can only be opened with the spouse, and whoever invests first in the account is the initial depositor in the joint account.
Minimum and maximum deposit amount
Minimum amount – Rs.1,000
Maximum amount – Rs.30 lakh.
Eligibility for SCSS
- Individuals above 60 years.
- Those civilians who have retired and are aged above 55 years and below 60 years. Within 1 month of receipt of retirement benefits, they will have to invest.
- Defense employees who have retired and are aged above 50 years and below 60 years. They will also need to invest within 1 month of receipt of retirement benefits.
- Hindu Undivided Families and Non-Resident Indians are not eligible for this scheme.
SCSS Interest rate
An interest rate of 8.2% per annum applies to this scheme. The interest rate will apply from 1st April 2023 to 31st March 2024 and be paid quarterly.
Steps on how to fill out the Post Office SCSS application form are mentioned below:
You can either download the form from the official website of India Post or take it from any post office branch nearby:
- Enter the post office branch name on the form.
- If you have a savings account with India Post write the account number in the form.
- Write the Post Office address in the given slot.
- Paste the account holder’s photograph.
- Write the account holder’s name in the given space and tick on the ‘SCSS’ option.
- Don’t select any options under the ‘Additional Facilities Available’ section as they are not necessary for this
- Select the account holder type
- self
- minor through guardian
- person of unsound mind through a guardian.
- Select the account type, whether single, survivor, all, or survivor.
- Enter your details.
- Tick the declaration for SCSS and enter the rest of the details.
- Other steps will be similar to normal account opening at the bank.
How do you open an SCSS account with a Bank?
Steps on how to open an SCSS account with a bank are mentioned below:
Step 1: Go to the nearest bank authorized to offer this scheme and ask them for the SCSS form.
Step 2: The rest of the steps are the same as above mentioned
Tax benefits under the SCSS
Individuals are eligible for tax deductions on investments up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961. TDS will be deducted If the total interest in all SCSS accounts exceeds Rs.50,000 per annum.
