Senior Citizen Savings Scheme (SCSS) – Financial Scheme

Senior Citizen Savings Scheme (SCSS)

Introduction: Senior Citizen Savings Scheme (SCSS) was introduced in 2004 as per the Senior Citizens Savings Scheme Rules,2004. It is a one time saving investment scheme provided by central government to the retirees. Eligible individuals can make a one time deposit and earn quarterly interest and get interest + principal after maturity period (5 years).

Eligibility for SCSS:

  1. Senior citizen of India aged 60 years or above.
  2. Retirees who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation with the age between 55-60. Here the investment has to be done within a month of receiving the retirement benefits.
  3. The retired personnel of Defence Services (excluding civilian Defence employees) irrespective of the above age limits.
  4. HUFs and NRIs are not allowed to invest in this scheme.

Deposits and withdrawals: There shall be only one deposit in the account in multiple of one thousand rupees not exceeding Rupees Fifteen lakhs. Deposits by depositors shall be restricted to the retirement benefits received by them or rupees fifteen lakh, whichever is lower.

Maximum Deposit: Rs 15,00,000

Note: Cash deposit is allowed only when deposit is less than Rs 1 lakh. For higher amount Cheque/DD is required.

Maturity: 5 years. One extension of 3 years is allowed. Such extended accounts can also be closed after one year of extension without any penalty.

Premature closure of account: Premature closure is allowed after one year on deduction of an amount equal to1.5% of the deposit & after 2 years 1% of the deposit.

Interest Rate: Check the latest Interest Rate here

Extra Points: 

  • TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a.
  • Nomination facility is available at the time of opening an SCSS account
  • Tax deduction up to Rs 1.5 lakh can be claimed under Section 80C of Indian Tax Act 1961.
  • A person can operate more than one SCSS account but the total deposit in all accounts should not exceed Rs 15 lakhs.
  • A depositor may open the account in individual capacity or jointly with spouse.


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