Senior Citizens Savings

A Senior Citizens’ Saving Scheme (SCSS) is a government-backed retirement benefits programme. Senior citizens resident in India can invest a lump sum in the scheme, individually or jointly, and get access to regular income along with tax benefits.

It is a Post Office savings scheme. Senior citizens can open an SCSS account to get the benefits of the SCSS. They can open an account in a Post Office branch or an authorised bank.

Secure investment
SCSS is a government-backed scheme. Hence, the invested amount is secure and there is guarantee of returns upon its maturity.

Interest payment
Individuals who open an SCSS account get an interest on the principal deposited amount at the rate fixed by the government. They will receive a quarterly interest against their deposited amount. Interest payment will be credited to an individual’s account on the first date of April, July, October, and January.

Mode of deposit
An individual can deposit the money in cash when the amount is below Rs.1 lakh. When the deposit amount is above Rs.1 lakh, an individual should make the payment in cheque.

Maturity of the scheme
The maturity period of SCSS is 5 years. However, individuals can extend the maturity period for 3 more years by submitting an application. The application for extension of maturity should be given in the 4th year.

Number of accounts Individuals can open more than one SCSS account. They may open another account either by themselves or a joint account with their spouse.

Transfer of an account
An SCSS account can be transferred from a post office to a bank and vice versa.

Premature closure Individuals can withdraw the amount after one year of opening the account. There is no charge for premature closure of the account within one year of opening it. However, a 1.5% charge will be deducted from the principal amount if the account is closed after one year but within two years of opening it. A 1% charge will be deducted from the principal amount if the account is closed after two years but within five years of opening it.