Senior Citizen Savings Scheme (SCSS)
Table of Contents
What is Senior Citizen Savings Scheme – SCSS
Senior Citizen Savings Scheme – SCSS is a Government of India backed saving scheme targeted senior citizens aged above 60 years. The investment can be done at India Post Offices and specified banks.
What is the interest rate on SCSS
- Interest rate is 7.4% per annum payable from the date of deposit to the end of quarter.
- Interest is payable every quarter (on 30th June; 30th September; 31st December; 31st March).
- Interest is credited to the linked savings account of the deposit office.
| Financial year | Interest % |
| 2004-05 | 9.00% |
| 2005-06 | 9.00% |
| 2006-07 | 9.00% |
| 2007-08 | 9.00% |
| 2008-09 | 9.00% |
| 2009-10 | 9.00% |
| 2010-11 | 9.00% |
| 2011-12 | 9.00% |
| 2012-13 | 9.30% |
| 2013-14 | 9.20% |
| 2014-15 | 9.20% |
| 2015-16 | 9.30% |
| Financial year | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar |
| 2016-17 | 8.60% | 8.60% | 8.50% | 8.50% |
| 2017-18 | 8.40% | 8.30% | 8.30% | 8.30% |
| 2018-19 | 8.30% | 8.30% | 8.70% | 8.70% |
| 2019-20 | 8.70% | 8.60% | 8.60% | 8.60% |
| 2020-21 | 7.40% | 7.40% | 7.40% | 7.40% |
Tax benefit of investing in SCSS
- Amount invested in SCSS is allowed as deduction under section 80C upto Rs 1.5 Lacs per annum.
- The Interest amount is taxable .
- The proceeds or redemption amount at maturity is exempt from tax.
SCSS Investment amount
- Deposits in multiple of Rs 1,000/-
- Maximum amount Rs 15,00,000/- for each senior citizen.
Salient features of SCSS
- An individual of the Age of 60 years or more may open the account.
- An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits
- A retired personnel of Defence Services (excluding Civilian Defence employees) shall be eligible to open an account under this Scheme on attaining the age of 50 years subject to the fulfilment of other specified conditions
- Maturity period is 5 years
- A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife)
- Account can be opened by cash for the amount below INR 1 lakh and for INR 1 Lakh and above by Cheque only.
- In case of Cheque, the date of realization of Cheque in Govt. account shall be date of opening of account.
- Nomination facility is available at the time of opening and also after opening of account.
- Account can be transferred from one post office to another
- Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
- Joint account can be opened with spouse only and first depositor in Joint account is the investor.
- In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. It will be applicable at all CBS Post Offices.
- *Quarterly interest of SCSS accounts standing at CBS Post offices can be credited in any savings account standing at any other CBS post offices.
- Premature closure is allowed,
- (i) If closed before 1 year , no interest will be payable, if paid already will be recovered.
- (ii) after one year on deduction of an amount equal to1.5% of the deposit to be deducted
- (iii) after 2 years 1% of the deposit to be deducted.
- After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction.
- TDS is deducted at source on interest if the interest amount is more than INR 50,000/- p.a.
Also read:
