Complete guide on Senior Citizen Saving Scheme (SCSS)

Senior Citizen Saving Scheme (SCSS) in IndiaComplete guide on Senior Citizen Saving Scheme (SCSS)

Among various investment options available for retired individuals, senior citizen saving scheme(SCSS) is an attractive saving scheme. Senior Citizen Saving Scheme offer 9.3% interest rates currently. What is Senior Citizen Saving Scheme (SCSS)? Who is eligible to open Senior Citizen Saving Scheme (SCSS) in India? In this article, I would touch upon key features of this scheme, who is eligble to open this scheme, whether withdrawal’s are permitted or not and how to open SCSS in India?

What is Senior Citizen Saving Scheme (SCSS)?

Senior Citizen Saving Scheme is a Govt. of India product for Senior Citizens of above 60 years which offers 9.3% interest rates. Since safety is most important point for senior citizens and this is a scheme offered by Govt. of India, it is safe investment option for Senior Citizens which offers highest interest rates.

Also Read: Do you know that New Pension Scheme (NPS) Scores high compared to EPF/PPF?

Who can open Senior Citizen Saving Scheme (SCSS) in India?

a) Following individuals can open SCSS scheme in India.

  • Any individual who attained 60 years and above can open SCSS.
  • Individual who has attained the age of 55 years or more but less than 60 years, and who has retired, can open the account within a month of the date of receipt of the retirement benefits and proof of date of disbursal of such retirement benefit(s) along with a certificate from the employer.
  • Retired personnel of defence services irrespective of age limit can open this account with certain conditions.

b) NRI’s and HUF’s cannot open SCSS scheme.

Where can we open Senior Citizen Saving Scheme?

Govt. of India has authorized all nationalized banks, post office and ICICI Bank where you can open this scheme. ICICI Bank is the only private sector bank allowed to open SCSS.

What are the features of Senior Citizen Saving Scheme?

  • Eligible Senior Citizen can open this account in individual capacity or jointly with spouse.
  • Eligible Senior Citizen can open multiple SCSS accounts with various banks. However maximum total deposit cannot exceed Rs 15 Lakhs.
  • Current interest rate is 9.3% per annum. This would be reviewed by Govt. of India every year and can modify the rate.
  • Interest would be calculated and credited by end of the calendar quarter i.e. on 31st March, 30th June, 30th September and 31st December.
  • Tenure of SCSS is 5 years. Depositor can extend this for 3 more years upon request.

Are there any penalty to withdraw amount from SCSS before maturity?

  • No withdrawals are permitted within 1 year.
  • If one want to withdraw after 1 year, but before 2 years, 1.5% of the deposit amount would be deducted as penalty.
  • If one want to withdraw after 2 years, but before maturity of 5 years, 1% of the deposit amount would be deducted as penalty.

Also Read: Complete Review of LIC's 9% Varishta Pension Bima Yojana Scheme

What are the tax benefits available for Senior Citizen Saving Scheme?

There is no wealth tax on SCSS. However interest on SCSS is taxable. Senior citizens need to pay income tax on this interest as per income tax applicable to them. Banks would deduct TDS as per their rules ( (a) 10% if you submit PAN card and 20% without PAN card and (b) Zero tax if you submit Form 15H for senior citizen).

How to open Senior Citizen Saving Scheme in India?

Eligible Senior Citizens can approach any nationalised bank or post office or ICICI Bank and need to fill the SCSS application form and submit self attested age proof document along with receipt of disbursal proceeds which he/she would have received from his employer etc., Age proof document could be Passport, DOB certificate, voter ID card, PAN card, Ration card, Driving license etc.,

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Complete guide on Senior Citizen Saving Scheme


  • Marie

    Excellent and very informative blog. I am circulating the address to all friends who are interested in investments.Thank you.

  • Satish

    can you please help what acknowledgement do i receive once i open this account, all it shows in my SB account is amount is transferred for senior citizen saving scheme – please assist

  • ramchandra s parab

    i/me having post office s.c.s.s. husband died 2 year before & maturityin jan-2015 &aiso iam not taken qtr interest shaii I GET BAIANCE INTEREST9.2% pl. repiy

  • Vinodh

    Sir I am vinod 34 and my wife is also working in abu dhabi. 1 kid boy 4 years of age
    I have started mutual funds 2000 each in franklin prima plus, high growth comp, smaller companies, hdfc balanced. And planning to start 2000 each in icici value discovery, prodential focused blue chip equity, hdfc midcap, 1000 in icici prubalabced.. total 15000 planning to invest in 10 years through hfdc nre account. How about my selected funds?
    I have term insurance 50 lakhs hdfc click to protect for 20 yearsfrom now.Lic jeeven ankur 5600 for quarterly 18 yearsfrom 2014 jeeven sakun 1lakh7000 single premium for 12 yearsfrom 2014.330 prandhanmanthri suraksha bheemayojana, 250 oriental pravasi insurance.
    9 lakhs chittii 50 month, cooperaive society. 5 lakhs half way stage and remaning on 6 to 8 months. Didnt take any. This for emergency fund.
    3 lakhs gold + 50000 money have. 50 lakhs land wth house have. Car loan remaining 12 months5000 monthly…ending aug2016.
    From january onwards we have 45000 monthly balance after paying everything. Which investment option we should select? Our planning to wk in abroad for only 10 yeras. After that I only work from 0 to 5 yeras if necessary. So 60000 can earn present value. Wen I come here I can earn mysef 25000 rs monthly. Within 10 years we wish to buy 15 lakhs present value land, make 20 lakhs house . 8lakhs vechicle. If we make house we can get 5000 rent for present house. For child educ max 15 lakhs. And also before 58 we have to collect pension corpus. Which investment best to collect pension corpus.?

    Can you please advice us to achieve our financial goals.

    Abu dhabi

  • Nagendra

    THanks suresh.

    My monther is pensioner and is of age 57 years. Is she eligible for this scheme? Thanks.

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