Senior Citizen Savings Scheme (SCSS)

Schemes for Senior Citizens

Senior Citizen Savings Scheme (SCSS) is a preferred fixed income investment option for people above the age of 60 years. The primary objective of this scheme is to help senior citizens ensure a regular flow of income post retirement. Since SCSS is a government-backed investment scheme, it gives guaranteed returns on a quarterly basis. One can avail the Senior Citizen Savings Scheme through certified banks and post offices in India.

Senior Citizen Savings Scheme (SCSS) Highlights
Interest Rate 7.40% per annum (Q1 FY 2022-23)
Tenure 5 years (with an option to extend it for 3 more years)
Minimum Investment Amount Rs. 1,000
Maximum Investment Amount Rs. 15 Lakh or the amount received on retirement, whichever is lower
  • Safe and reliable investment
  • High returns as compared to FD or Savings Account
  • Tax benefit up to Rs. 1.5 Lakh
Premature Withdrawal Penalty
  • 1.5% of the deposited amount if withdrawn before the completion of 2 years
  • 1% of the amount on withdrawing after the completion of 2 years
SCSS Eligibility Criteria

If you fall in the following groups, you are eligible to invest in the Post Office Senior Citizen Savings Scheme:

  • Indian citizens above the age of 60 years
  • Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation*
  • Retired defence personnel above 50 years and below 60 years of age*

*Investment must be made within a month of availing the retirement benefits.

Note: HUFs and NRIs are not eligible to invest in Senior Citizen Savings Scheme

Benefits of Investing in Senior Citizen Savings Scheme
Given below are the top reasons why Senior Citizen Savings Scheme is a preferred investment option among senior citizens:
  • Guaranteed Returns: Since SCSS is a government-backed small savings scheme, it is one of the safest and most reliable investment options for senior citizens.
  • High-Interest Rate:  Offering interest at the rate of 7.4% per annum, SCSS is among the most beneficial investment options, especially compared to the rather traditional ways of savings such as FD and Savings Account
  • Tax Benefit- Under section 80C of the Income Tax Act, SCSS is eligible for a tax deduction of up to Rs. 1.5 Lakh per annum.
  • Simple Investment Process: The process of investing in SCSS is quite simple. You can open an SCSS at any authorized bank or any post office in India.
  • Quarterly Interest Payouts: Under SCSS, the interest amount is paid to the accountholders quarterly which ensured period payouts adding to your investment. Interest will be credited on the first day of April, July, October, and January every financial year.