Senior Citizen Savings Scheme: How To Open, Benefits And Other Details
The Senior Citizens Savings Scheme (SCSS) is a government-backed deposit scheme in India specifically designed for senior citizens.
The SCSS is considered a good option for senior citizens who are looking for a safe and reliable investment with a guaranteed interest rate.
An individual who has attained the age of 60 years or above on the date of opening of an account or an individual who has attained the age of 55 years or more but less than 60 years and has retired under Superannuation, VRS, or Special VRS, can open a SCSS account.
Retired personnel of Defence Services (excluding Civilian Defence employees) can also open an account upon attaining the age of 50 years subject to the fulfilment of other specified conditions.
A depositor can open an account individually or jointly with a spouse. However, the whole amount of deposit in a joint account shall be attributable to the first account holder only.
The SCSS account can be opened by a senior citizen at a bank or post office. To open the account, they need to ensure a minimum deposit Rs 1000 in the multiples thereof with a maximum deposit of Rs 30 lakh.
Deposits in SCSS qualify for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
For the quarter ending September 30, 2024, the rate of interest on the Senior Citizens Savings Scheme is 8.2% per annum, paid quarterly.
The account can be closed after the expiry of 5 years from the date of opening of the account. The depositor may extend the account for a further period of 3 years.