Senior Citizen’s Saving Scheme (SCSS)

The Senior Citizens Savings Scheme (SCSS) is primarily for the senior citizens of India.

The scheme offers a regular stream of income with the highest of safety and tax saving benefits. It is an apt choice of investment for those over 60 years of age. The age limit is reduced to 55 years in case of an individual retiring on superannuation or otherwise, or under VRS (Voluntary Retirement Scheme) or special VRS, provided the account is opened within one month of the date of receipt of retirement benefits.

Salient Features of the SCSS:

  • This is an effective and long-term saving option which offers security and added features that are usually associated with any government-sponsored savings or investment scheme.
  • These schemes are available through certified banks and post offices across India.
  • NRIs, PIOs and HUF are not eligible to invest in this scheme.
  • The tenure of this scheme is 5 years with the option to extend it for further 3 years.
  • An individual can invest a maximum amount of Rs 15 lakhs, individually or jointly in an SCSS account (in multiples of Rs 1,000). The amount invested in the scheme cannot exceed the money that has been received on retirement. Hence, the individual can invest either Rs 15 lakhs or the amount received as a retirement benefit, whichever is lower. The account can be opened by cash for an amount below Rs 1 lakh and by cheque for an amount exceeding Rs 1 lakh.
  • Unlike bank deposits, there is no compounding of interest under this scheme.

Premature closure is allowed after expiry of one-year subject to following conditions:

  1. After expiry of 1 year but before 2 years, 1.50% of deposit shall be deducted.
  2. After expiry of 2 years, 1% of the deposit shall be deducted.
  3. No deduction is made in case of closure of account due to the death of the account holder.

Documents required for submission:

  1. Know Your Customer (KYC) form
  2. Permanent Account Number (PAN)
  3. Aadhar card
  4. Address proof
  5. Age proof
  6. Photographs of the applicant
  7. Duly Filled application form available at the bank or post office