The Senior Citizen Savings Scheme (SCSS) is a savings scheme for Indian senior citizens aged 60 years and above. The scheme is backed by the government and offers a higher rate of interest than most other savings schemes.
The SCSS is considered to be a safe and secure investment option for senior citizens in India. It provides a regular income stream and helps them meet their financial needs during their retirement years.
How To Open A Senior Citizen Savings Scheme Account (SCSS)?
A senior citizen can open a SCSS account at a bank or post office. They must ensure a minimum deposit of Rs 1000 in multiples thereof and a maximum deposit of Rs 30 lakh in order to open the account.
There can only be one deposit in the account, up to a total of Rs 30 lakh, in multiples of Rs 1000. A single withdrawal from an account cannot be made more than once.
Who Can Open A Senior Citizens Saving Scheme Account?
An individual who has attained the age of 60 years or above on the date of opening of an account or an individual who has attained the age of 55 years or more but less than 60 years and has retired under Superannuation, VRS or Special VRS, can open an account.
Retired personnel of Defence Services (excluding Civilian Defence employees) can also open an account on attaining the age of fifty years subject to the fulfilment of other specified conditions.
A depositor has the option of opening an account individually or jointly with a spouse. However, only the first account holder will be attributed to the whole amount of deposit in a joint account.
From the date of deposit through March 31, June 30, September 31, or December 31, interest is payable on the first working day of April, July, October, or January, depending on the situation. Thereafter, interest is payable on the first working day of April, July, October, or January.
For the quarter ending June 30, 2023, the interest rate on the Senior Citizens Savings Scheme is 8.2%.
After five years from the date of account opening, the account may be closed. The account may be extended by the depositor for an additional three years.
Premature closure is allowed under specific circumstances. Payments into SCSS are deductible under Section 80-C of the Income Tax Act.
