Senior Citizen Savings Scheme (SCSS) is a retirement benefit and corpus scheme by the Indian government. The minimum and maximum investment amount in this scheme is Rs. 1,000 and Rs. 15 lacs. The SCSS is for senior citizens over 60 years old and people who are between 55 years and 60 years of age, but have also opted for Voluntary Retirement Scheme and may invest in the SCSS. The investor earns a handsome interest on the principal amount. The current rate of interest is 7.4% per year. There are also tax benefits on the principal investment amount.
In this post, we will discuss about benefits of investing in Senior Citizen Savings Scheme, features, SCSS interest rates, calculation of interest earned, eligibility criteria, documents required, how to open SCSS account, applicable taxes and tax benefits, and FAQs.
Senior citizens over 60 years old and individuals between 55 years and 60 years with Voluntary Retirement Scheme opted can earn a fixed and safe returns on the invested principal amount. The starting investment amount is as low as Rs. 1,000. As this savings scheme is backed by the government of India, it is trustable, and provided by certified banks as well as post offices in the country.
Here are some features of SCSS:
The Finance Ministry revises the rate of interest for SCSS at timely intervals. The interest is usually calculated and credited each quarter. As per latest news, the current quarter rate is 7.4% per annum. Below mentioned are the Senior Citizens Savings Scheme interest rates over the last few quarters:
The interest is quarterly compounded. The interest accumulated is also disbursed every quarter, starting from the first day of April, July, October, and January. The returns earned depend on the principal deposit amount, the applicable rate of interest, and maturity period.
Here are the eligibility criteria for Senior Citizens Savings Scheme:
You have to provide a copy of the mentioned documents, which should also be self-attested:
To open an account under the Senior Citizen Savings Scheme at any authorized public or private sector bank or post office, here are the steps to follow:
Here is how taxation works for SCSS:
Here are the SCSS FAQs:
You can open multiple SCSS accounts either in your name, or jointly with a spouse. But the maximum limit of investment amount in a financial year for all accounts together is Rs. 15 lacs.
Here is a list of public and private sector banks that offer service for SCSS account:
If you open the Senior Citizen Savings Account in a bank, then the accrued interest is deposited in your savings account at the bank branch. You can avail 24 x 7 customer service on phone banking. Also, you can receive the standard account statement on email or post.
You can extend the tenure by 3 years from the fixed 5 years of investment. However, you can opt for the extension only once. And the request for extension has to be made in a year of account’s maturity.
You can download the SCSS application form online. You need to provide your name and PAN, cheque/demand draft amount and number if applicable. As a primary applicant, you have to provide name of your father/mother/wife/husband. If you are opening a joint account with spouse then you have to provide his/her name, age, and address. You have to add a nominee so provide his/her name, address, and age. You can add more than one nominee.
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