If you’re one of those citizens who are going to retire in the next few years and looking for passive income to bear your monthly expenses after retirement then look no further than the Senior Citizen Savings Scheme. It’s a government-backed scheme so all your investment and returns will be secured.
Senior Indians aged between 55-60 years can open an SCSS account. Senior citizens who took the Voluntary Retirement Scheme (VRS), can also open an account in this scheme. This scheme was launched back in 2004 but the government re-launched this scheme in the 2023 budget.
The scheme provides a vast range of benefits and almost every Indian senior citizen can apply for this scheme if he/she meets the eligibility criteria. The senior citizen saving scheme is customized to suit the specific requirements of an investment-minded senior citizen. Let’s talk about the salient features, benefits, and all the senior citizen saving scheme details.
Senior Citizen Saving Scheme Benefits
The Senior Citizen Saving Scheme benefits can attract any senior citizen who’s a business-minded person and wants to invest his/her hard-earned money to get higher returns. The list of benefits will help you to make a better decision about whether you should apply for this scheme or let it be.
- The maturity period of the Senior Saving scheme is 5 years and can be further elongated by 3 years.
- The application for an account extension period should be submitted to the bank or post office within the first 4 years after the account opening.
- The SCSS maximum deposit limit is 30 Lakh.
- The minimum deposit limit is Rs. 1000/-
- The Senior citizen saving account can be transferred from the post office to any authorized bank and vice versa.
- Individuals can transfer their accounts anywhere in India where they’ve got a post office or an authorized bank.
- This scheme also offers premature closure of the account, and there’ll be no deduction from the principal amount if an individual wants to close his/her account within 1 year after account opening.
- The account be open mutually with your spouse.
- The investment limit will be 2x when an individual opens the account with his/her spouse.
- Individuals can nominate one or more than one person and also can cancel the cancel nomination whenever they want.
- If an individual is enrolled in Voluntary Retirement Scheme (VRS) and his/her age is above 55 then his/her upper limit will be changed according to the retirement benefits.
- A woman who doesn’t want to avail of this scheme can also go for the Mahila Samman Saving Scheme which is similar to this one but offers more benefits.
SCSS Tax Benefits
- The current interest rate of this scheme is 8.2%. This interest rate changes after every 3 months in a year.
- The 8.2% interest rate will be implemented from April 2023 to June 2023.
- quarterly interest will credit to the individuals’ bank account at the end of each quarter e.g. 31st March, 30th June, 30th September, and 31st December.
- The Senior Savings Scheme income tax deduction is up to 1.5 lahks under section 80C of the Indian tax act, 1961.
- If an individual has got more than Rs. 50,000/- interest rate in a financial year then he/she will have to pay TDS on that rate. But if they want to secure the TDS account then it can be done by filling out the 15H form if they fell in that specific category.
- The individuals should submit the 15H form at the start of every financial year.
This scheme offers attractive features that every Senior Indian who wants to invest his/her valuable money with safe returns. Let’s come to the point and discuss its features so you can understand this scheme in a better way and can compare it with government schemes.
Safe & Secure Investment with Guaranteed Returns
The senior citizen saving certificate scheme is a government-backed scheme so your invested amount will be secured with guaranteed returns. It’s a small gesture towards our elderly population that can go a long way in making them feel valued and respected.
Applicants can deposit cash if an amount is below Rs. 1lakhs. If the deposit amount exceeds Rs. 1 Lakh then he/she must deposit the amount through a cheque.
The account holder can declare anyone as a nominee and the nomination can be canceled by the depositor whenever he/she wants. If the account holder died before the account matures, then the nominee will be eligible for the due amount.
In the Senior Citizen Saving Certificate Scheme, the account can be opened individually or with a spouse. The maximum deposit limit will be Rs. 60 Lakh if an account would be opened mutually. So it’s a great feature if anyone wants to open a saving account with their spouse.
Minimum & Maximum Deposit Limit
The minimum deposit limit is Rs. 1000/- and the Maximum deposit limit is Rs. 30 Lakh for an individual. If anyone wants to increase the number of the deposited amount then it can be done with a multiple of 1000.
If an account holder wants to close his/her account after 1 year of account opening then, in this case, a 1.5% amount will be deducted from the principal amount as a penalty. Similarly, if an account holder wants to close his/her account after 2 years of account opening then in this case, 1% will be deducted from the principal amount as a penalty.
However, if an individual died before the account matures then no penalty will be charged and all the amount with the current interest rate will be handed over to the nominee.
If a girl child is just born in your house then secure her future by applying to the Sukanya Samriddhi Yojana.
Eligibility Criteria for Senior Citizen Saving Certificate Scheme
Those who are still confused about whether they’re eligible or not for the Senior Citizen Scheme. Your confusion will be cleared after reading this to the end. The eligibility criteria are as follows.
- Senior citizens whose age is above 60 years are eligible for this scheme.
- Individuals whose age is between 55-60 years and who’ve enrolled in the Voluntary Retirement Scheme (VRS) can open an account in this scheme.
- Retired defense employees aged between 55-60 years are also eligible for this scheme but the investment should be made within 1 month of receipt of retirement benefits.
- Non-resident individuals (NRI) are not eligible for this scheme.
- Applicants who belong to Hindu Undivided Family (HUF) category are also not eligible for the Senior Citizen Saving Certificate Scheme.
What is the eligibility for the Senior Citizen Saving Scheme (SCSS) of a defense retiree?
Retired defense employees aged between 55-60 years can also be eligible for the senior citizen saving scheme but they’ve to deposit the amount in their account within 1 month of retirement benefits. It is a gesture from the government to the senior citizens of the country to serve the country well.
Documents Required for Senior Citizen Scheme
It’s a good decision to apply for the senior citizen saving certificate scheme. With the help of this scheme, you can bear your monthly expenses without having any problem but before applying for the scheme, it’s a must to gather all the related documents that will be essential in the application process. A list of complete documents is given below.
- Identity proof (Aadhaar Card, Pan Card, Voter ID)
- Proof Of Address (Adhaar Card, Electricity or Telephone Bills)
- Proof of Age (Birth Certificate, Aadhaar Card, Voter ID)
- SCSS Form
- 2 Passport Size Photo
- KYC Form
- Retirement Documents (For VRS Category)
- Retirement Benefits Proof (FOr VRS Category)
Application Process for SCSS
The government has made the application process is so simple that everyone can apply for the scheme easily without having any problems. Now that you’ve made a decision to enroll in this profitable scheme and also gathered all the related documents. So let’s move to the application process.
You can apply for the scheme by visiting any post office or authorized bank which is close to your residence with all your documents. We’re going to guide you about how you can apply for Senior Citizen Saving Scheme. We’ll discuss how you can apply from the bank or any post office.
How to Apply for the SCSS Through Post Office
Given below is a step-by-step and comprehensive guide that’ll help you to apply for the scheme.
Visit the official website of the India post office which is indiapost.gov.in. Click on Banking & Remittance from the menu, and then select Post Office Saving Scheme Option.
Now click on the Senior Citizens Savings Account (SCSS) and click on the Senior Citizen Savings Scheme Rules 2019 option which is given below, take a printout of the application form, and fill it out completely.
Attach a list of documents that are given in the above section of the article and visit your nearest post office.
Submit the form to the post office employee along with the deposit amount, and after the complete verification process, they’ll give you a certificate that’ll be related to Senior Savings Scheme.
How to Apply for the SCSS Through Authorized Bank
Step-01: Visit any authorized bank that’s near your residence along with the SCSS form, or you can ask for the form from the bank employees.
Step-02: Fill out the form properly and attach all the essential documents with it along with 2 passport-sized photos.
Step-03: Submit the form to the bank employee and also the amount that’ll be deposited in your bank account.
Step-04: If the amount that you want to deposit is below Rs. 01 lahks then you can pay them in cash otherwise you’ve to deposit the amount through a cheque.
Step-05: Once the verification process would have been completed by the bank employee, your account will be open in that bank.
Senior Citizen Savings Certificate Scheme Authorized Banks List
Given below is the list of authorized banks that offers the SCSS scheme. Visit any branch of these banks and open an SCSS account for free.
- ICICI Bank
- Union Bank of India
- Vijaya Bank
- UCO Bank
- 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
What is the Senior Citizen Savings Scheme (SCSS)?
The Senior Citizen Savings Certificate is a government-backed scheme that was launched for Indian senior citizens. With the help of this scheme, you don’t have to worry about your monthly expenses. If you’ve got an investment mind then this scheme can be groundbreaking for you.
The scheme offers attractive benefits including a monthly pension and higher interest rates. It’s never been easier to manage your finances and avail the goods and services you need. This scheme is designed to make life easier and more comfortable for our elderly population, ensuring they can live with dignity and respect.
Don’t miss out on this opportunity to get the support and assistance you deserve. Apply for the Senior Citizen Scheme today so you don’t have to worry about your monthly expenses.
How Does the Senior Citizen Savings Scheme Works?
Under this scheme, individuals need to open an account through the post office or any authorized bank. Related documents must need to attach while submitting the form including the deposited amount. Once the account would have been opened, the numbers will get changed with the help of interest rate.
Individuals can withdraw the amount on monthly or quarterly bases but we recommend you not to withdraw the profitable amount because when the principal amount increases, the profit margin increases automatically.
Suppose you’ve deposited Rs.30 lakh in the Senior Citizen Savings account. Now with the help of the current interest rate which is 8.2% per annum, your profit will be Rs. 246,000/- yearly. If we take a look at quarterly profit, so your profit after every 3 months will be Rs. 61,500/- and the monthly profit will be Rs. 20,500/- according to the current interest rate.
SCSS Calculation Method:
Investment Amount x Current Interest Rate = Answer
Answer / 4 = Quarterly Profit
Quarterly Profit / 3 = Monthly Profit
Senior Citizen Savings Scheme VS Fix Deposit (FD)
|Eligibility Criteria||Must be 55-60 Years or Older||No age Limit|
|Interest Rate||8.2% Currently||Fix Interest Rate which Varies with Bank|
|maturity Period||5 Years + 3 Years extension||Varies with Bank and term|
|Tax Benefits||Section 80C||Tax Benefits after 5 years|
|Safety||Government-backed||Varies with bank|
|Premature withdrawal||Allowed with penalties||Allowed with penalties|
Senior Citizen Savings Scheme VS PM Vaya Vandana Yojana
|Eligibility Criteria||Must be 55-60 Years or Older||Must be 60 Years or Older|
|Interest Rate||8.2% Currently||7.4%|
|maturity Period||5 Years + 3 Years extension||10 Years|
|Tax Benefits||Section 80C||Not 80C Eligible|
|Premature withdrawal||Allowed with penalties||Allowed with penalties on Medical Grounds|
|Application Method||Post Office, Private & Gov. Banks||LIC Bank|
|Free Look-In Period||Only with Spouse||Only with Spouse|
|Minimum Deposit Limit||Rs. 1000/-||Rs. 1.50 Lakh|
|Maximum Deposit Limit||Rs. 30 Lakhs||Rs. 15 Lakhs|
|Loan||Not Available||75% of the principal amount|
|Free Look In Period||Not Available||15 days|
Senior Citizen Savings scheme is a small gesture from the government to India’s senior citizens. By availing of this scheme, citizens can bear all their monthly expenses without having any problems. So don’t miss the opportunity if you’ve met the criteria. Visit the official website of Indiapost, download the form, and apply at any nearest post office or authorized bank.