Senior Citizen Savings Scheme

Senior Citizens Saving Scheme is a very good opportunity for senior citizens above 60 years to make money. The interest earned from this plan can meet out your household expenses while the balance amount can be further invested in any other schemes also. It is a fixed income scheme, the money you invested is not subject to market risks and is quite safe.

• SCSS account can be opened at post offices and banks
• The investment can be made in the individual name or in the joint name with spouse only.
• The investment in this scheme can be made by an Indian resident.
• HUFs and NRIs are not allowed to invest in this scheme.
• The account can be transferred from one post office to another post office

• The following persons are eligible for the said scheme: -

1. Any person with the age of 60 years or above.
2. An individual who has retired on superannuation or under VRS, at the age of 55 years or more but less than 60 years can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.
3. Retired defense personal with the age of 50 years or above.

• Budget 2023 Latest Update: The maximum deposit under this scheme has been enhanced from Rs 15 lakhs to Rs 30 lakhs, The maximum limit for investment is Rs. 15 lakhs irrespective of number of accounts, individually or jointly (in multiple of Rs. 1,000).

• The amount can be deposited through cheque, demand draft or online transfer. Cash can be deposited to the extent of Rs. 1.00 lakh only.

• Now the Interest rate for the 1st quarter of 2023-24 is 8.20% per annum. the interest rate has reduced to 7.40% per annum w.e.f. 01.04.2020, The Interest rate is revised from 3^rd quarter @ 8.7% per annum (earlier in 1^st or 2^nd quarter of 2018 it was 8.3%).
• Interest is received on quarterly basis i.e.1st working day of April, July, October and January accordingly.

• Residential proof of the applicant
• Identity proof of the applicant
• Proof of date of birth
• Photograph of the applicant

• 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.

• Principal amount is payable on maturity i.e. after completion of 5 years, which can be further extended for three years.

• Investment under this scheme is eligible for tax benefit under section 80C.

• Interest received thereon is fully taxable.
• This is guaranteed investment schemes.

• Nomination facility is available at the time of opening and after opening of account.
• TDS is deducted at source on interest if the interest amount is more than Rs. 50,000/- p.a.