Senior Citizens Savings Scheme (SCSS)
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument designed to provide regular income and financial security to senior citizens. It is available through all head post offices and select sub-post offices across India.
Eligibility
- Individuals aged 60 years and above
- Individuals aged 55 years and above who have retired under a superannuation or voluntary retirement scheme (account to be opened within 3 months of retirement)
- Retired defence personnel aged 50 years and above (subject to conditions)
- Joint accounts can be opened with spouse only
Key Features
- Interest Rate: 8.2% per annum (compounded quarterly and payable quarterly)
- Maximum Deposit: ₹30 lakh (single or joint)
- Minimum Deposit: ₹1,000
- Maturity Period: 5 years (extendable by additional 3 years once)
- Tax Benefit: Investment eligible for deduction under Section 80C of Income Tax Act
- Interest Payout: Quarterly interest credited directly to the account holder's savings account
Premature Closure
Premature closure is permitted after 1 year from the date of opening. A penalty equivalent to 1.5% of the deposit amount is deducted if the account is closed before 2 years, and 1% if closed after 2 years but before 5 years.
Account Extension
On maturity, the account can be extended for a further period of 3 years by submitting Form 9. The interest rate applicable at the time of extension will be paid on the extended deposit.
Documents Required
- Aadhaar Card
- PAN Card
- Age proof (Birth certificate, Pension payment order, or any government-issued ID with date of birth)
- Passport size photographs
- For retired personnel: Pension payment order and retirement letter
How to Open an Account
Visit your nearest post office with the required documents and fill out the SCSS account opening form (Form A). The account can be opened with cash, cheque, or through transfer from another post office savings account.