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Senior Citizen Saving Scheme

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Senior Citizen Saving SchemeSenior Citizen Saving Scheme

The senior citizen saving scheme is primarily a scheme designed for the senior citizens of India. It can be availed by anyone who is 60 years of age or above. It was launched in 2004 by the government of India with the primary objective of ensuring a regular flow of income for senior citizens. The scheme offers guaranteed interest payments, which can avail every quarter also.
In current years it has been proposed to exempt the senior citizens from filling IT returns if pension income and interest income are their only incomes because of section 194P introduced newly by govt. To enforce the banks to deduct taxes on senior citizens more than 75 years of age who have a pension and interest income.

Basic Information

Tenure 5 years
Interest Rate 7.4% p.a.
Investment Amount The maximum amount that can be deposited is Rs.15 lakh
Premature Withdrawal Allowed

What is the Senior Citizens Saving Scheme?

The SCSS is a government-backed retirement benefits programme that senior citizens in India can avail themselves of. In this, senior citizens of India can invest a lump sum in the scheme, individually or jointly, and get access to regular income along with other tax benefits.

What is a Senior Citizens Saving Scheme in the Post office?

SCSS is one of the schemes offered by the post office department. You can open an account in the Post office for SCSS same as you open an account in an authorised bank. But before opening the report, please check your eligibility beforehand.

How many accounts can be opened under Senior Citizen Saving Scheme by a senior citizen?Senior Citizen Saving Scheme

Yes, you can open more than one account in this scheme but only on a condition that the deposits in all the account taken together is not more than Rs. 15 lakhs.
Also, more than one account shall not be opened simultaneously in the same deposit branch during a calendar month.

How does the Senior Citizens Saving Scheme works(SCSS)?

  • Firstly, open an SCSS account by depositing a minimum sum of Rs. 1000 or up to Rs. 15 lakh in a single instalment.
  • The deposit amount should be deposited within one month of receiving retirement benefits from the employer.
  • Retirement benefits in the above point mean any payment due to the account holder on retirement on superannuation or otherwise. It includes funds dues, retirement or superannuation gratuity, pension of commuted value, leave encashment, saving elements of group saving linked insurance scheme payable by the employer on retirement etc.
  • Interest is deposited once every year, every quarter.
  • The account can be prematurely closed at any time after the date of opening.

Which banks offer Senior Citizen Saving Scheme?Senior Citizen Saving Scheme

All post offices offer this scheme apart from that this is the following banks that offer SCSS

  • Allahabad Bank
  • Andhra bank
  • Bank of Maharashtra
  • Bank of Baroda
  • Bank of India
  • Corporation Bank
  • Canara Bank
  • Central Bank of India
  • Dena Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Punjab National Bank
  • State Bank of India
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • Vijaya Bank
  • Private Bank

Eligibility

The eligibility criteria for the SCSS are mentioned below:

  • An individual who is 60 years of age or older at the time of opening an SCSS account.
  • Individuals over the age of 55 but under 60 and who have retired on superannuation are eligible to open an SCSS account.
  • Individuals who have reached the age of 55 and retired before implementing the SCSS rules are eligible for the scheme.
  • Retired Defense Services personnel, regardless of age, are eligible under the SCSS. These individuals must, however, meet several additional requirements.
  • Non-Resident Indians (NRIs) cannot open an SCSS account.
  • HUFs (Hindu Undivided Families) are also ineligible to open an SCSS account.

 FAQ’s on Senior Citizens Saving Scheme

✅ Which banks offer senior citizen savings schemes?

Here is a list of banks that offers this scheme:-

  • Allahabad Bank
  • Andhra bank
  • Bank of Maharashtra
  • Bank of Baroda
  • Bank of India
  • Corporation Bank
  • Canara Bank
  • Central Bank of India
  • Dena Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Punjab National Bank
  • State Bank of India
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • Vijaya Bank
  • Private Bank

✅ Which scheme is best for senior citizens?

For senior citizens, the SCSS scheme is the best option. This scheme not only offers a higher rate of interest than regular savings and fixed deposit bank accounts, but it also provides tax benefits of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act of 1961.

✅ Can I transfer my SCSS account from the post office to the bank?

Yes, it can be transferred. An account holder has the option of transferring this SCSS scheme to a different bank account or post office of their choice. For the same, a transfer form must be submitted. The cost of this feature is insignificant.
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