Senior citizens often look for safe and steady income options. With fixed deposit rates changing frequently and many investments offering low returns, one scheme stands out — the Senior Citizen Savings Scheme (SCSS).
SCSS offers safety and a regular income to retirees, providing an attractive 8.2% annual interest rate. It also offers tax savings under Section 80C up to Rs 1.5 lakh.
What Is SCSS?
The Senior Citizen Savings Scheme is a government-backed savings plan designed for people aged 60 years and above.
You can open this scheme at post offices and authorised banks. The interest is paid every quarter.
The minimum deposit is Rs 1,000 and the maximum is Rs 30 lakh. If your total deposit is less than Rs 1 lakh, you can pay in cash. For deposits above Rs 1 lakh, payments must be made by cheque.
Repayment Tenure and Withdrawal Rules
The tenure for SCSS is 5 years. You can close the account early by filling Form 2, but you cannot make partial withdrawals — only one full withdrawal is allowed.
If you close the account before 1 year, you must return all the interest earned.
If closed after 1 year but before 2 years, a penalty of 1.5% on the deposit amount will be charged.
If closed after 2 years but before maturity, a penalty of 1% will be deducted.
How to Open an SCSS Account?
Visit any post office or authorised bank branch.
Fill out Form A (the SCSS account opening form).
Provide personal details like your name, date of birth, address, deposit amount, and nominee details.
Submit required documents such as Aadhaar card, PAN card, passport, passport-size photo, and proof of retirement.
Deposit the amount — in cash if less than Rs 1 lakh, or by cheque/demand draft if above Rs 1 lakh.
After verification, your account will be opened.
You will receive a passbook or account confirmation.
You can also open a joint account with your spouse, but the primary account holder must be a senior citizen.
