Golden Year’s Savings: Secure Your Retirement with Senior Citizen Savings Scheme (SCSS)

SCSS offers 8.2% per annum (Q1 FY 2023-24), hence it could be a great opportunity for elderly people to get benefitted with an additional 0.8% interest. As per the media reports, Vinit Khandare, CEO and Founder, MyFundBazaar said that the person will be penalised with 1.5% of the deposit in case a withdrawal is made after one year but within two years of the deposit.

For those over 60, the Senior Citizen Savings Scheme (SCSS) is a popular fixed-income investment option. This program's main goal is to assist seniors in securing a steady income after retirement. Because SCSS is a government-backed investment programme, it offers quarterly returns that are guaranteed. In India, accredited banks and post offices provide the Senior Citizen Savings Scheme.

SCSS offers senior citizens to invest a minimum of Rs. 1000 with a tenure of 5 years with an extended period of 3 years.

Who can Apply for SCSS?

If you meet all the below requirements then you can invest in the Senior Citizen Savings Scheme:

• Must be a citizen of India

• Citizens should be at least 60 years

• Retired defence employees age between 50 to 60 years 

• Retirees between 55-60 years and opted for Superannuation or Voluntary Retirement Scheme (VRS) 

SCSS Deposit Limits

Investors who are eligible to apply may deposit the following amount in Senior Citizen Savings Scheme (SCSS).

• Minimum Deposit – Rs. 1,000

• Maximum Deposit – Rs. 15 Lakh or the amount received on retirement (whichever is lower)

Note: If need to deposit more than Rs. 1 lakh, then the investor must use a DD or cheque. 

Benefits of Investing in SCSS

Guaranteed Returns: One of the safest and most dependable investing options for older citizens is the SCSS because it is a government-backed small savings programme.

High-Interest Rate: Providing interest at a rate of 8.2% annually, SCSS is one of the best investment options, especially when compared to more conventional methods of saving like FD and Savings Account.

Tax Benefit: As per section 80C, the SCSS investors may get a tax deduction of up to 1.5 lakh  per year. 

Simple Investment Process: The procedure for investing in SCSS is straightforward. In India, an SCSS can be opened at any authorised bank or post office.

How to Open SCSS Account?

Eligible candidates interested in the Senior Citizen Saving Scheme can open their accounts through the post office or any authorized bank branch across the country. Here are the steps to follow -

Through Post Office

Go to the India Post Office and fill out the account opening form. Additionally, provide all the required documents like address proof, proof of age, photographs, etc.

Through an Authorized Bank Branch

In addition to the above, a candidate can also open their SCSS account through any of the authorized bank branches in India. Opening an SCSS account with a bank may benefit in the following ways -

• The accrued interest gets credited directly to the depositor’s savings bank account

• Statements are provided to depositors through email or post

• Round-the-clock customer support