Senior Citizen Savings Scheme (SCSS)

About Senior Citizen Savings Scheme (SCSS):

• SCSS was launched with the main aim of providing senior citizens in India a regular income after they attain the age of 60 years old.
• Who is eligible?
  • 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.
• Maturity: It has a maturity period of five years. But, a depositor can extend one's maturity period for another three years.
• Number of accounts: Individuals are allowed to operate more than one account by themselves or open a joint account with their spouse.
• Deposit Limits: Eligible investors can make a lump sum deposit
• Minimum Deposit– Rs. 1,000 (and in multiples thereof)
• Maximum Deposit– Rs. 15 Lakh or the amount received on retirement, whichever is lower(Increased to Rs 30 lakh in Budget 2023).
• Interest Payment: Under SCSS, the interest amount is paid to the accountholders quarterly.
• Premature withdrawal: After one year of opening the account, premature withdrawal is allowed.
• Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.