by Senior Citizens Savings Schemes can be availed by any individual above the age of 60 years. They are effective savings options for the long term and offer attractive features and unmatched security.
Senior Citizens’ Saving Scheme is one of the Post Office savings schemes. You can open an account under SCSS in the Post Office like you can open it in any authorised bank. Like any other Post Office saving schemes, you can visit the nearest Post Office branch or the branch where you hold a savings account to open the SCSS account.
A Senior Citizens’ Saving Scheme (SCSS) account is an account that offers retirement benefits and is backed by the Government of India. Senior citizens residing in India can avail the benefits of the account by investing a lump sum in the scheme, either individually or jointly. The account will provide access to regular income post-retirement along with income tax benefits.
| Tenure | 5 years |
| Interest Rate | 7.4% p.a. |
| Investment Amount | Maximum amount that can be deposited is Rs.15 lakh |
| Premature Withdrawal | Allowed |
Who are eligible:
- Senior citizens of India aged 60 years or above.
- Citizens who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation and in the age bracket of 55-60 years.
- Retired defense personnel above 50 years of age and below 60 years of age
- HUFs and NRIs are not allowed to invest in this scheme.
- The investment has to be done within a month from the date of receiving the retirement benefits.
Reasons:
- SCSS is an Indian government-sponsored investment scheme and hence is considered safe and most reliable.
- SCSS account includes a simple process and can be opened at any authorized bank or any post office in India.
- The account is transferable across India.
- The scheme offers a high interest rate on the deposit.
- Get an income tax deduction of up to Rs.1.5 lakh under Section 80C of the Indian Tax Act, 1961.
- The 5-year tenure of the account can be extended for another 3 years.
