Senior Citizen Saving Scheme- SCSS can be availed by all those people whose age is more than 60 years. Apart from this, those who have taken VRS can also take advantage of this scheme.
Senior Citizen Saving Scheme (SCSS) is specially for those people whose age is more than 60 years by the government. It has been prepared with the objective of providing regular income to senior citizens after retirement. Apart from this, those who have taken VRS can also take advantage of this scheme. Its interest rate is very high as compared to fixed deposits and savings accounts, hence this scheme is being liked a lot. You can open Senior Citizen Savings Scheme account in any authorized bank or post office branches in the country. Know here the special things related to the Senior Citizen Savings Scheme.
The amount matures after 5 years
Minimum 1000 and maximum 15 lakh rupees can be deposited in this account. The amount is deposited in the scheme in multiples of 1000. The deposited amount matures after 5 years from the date of account opening. If the depositor wishes, after the maturity of the deposit, the tenure of the account can be extended for three years. But this extension option is available for one time only. Interest is payable on the deposit amount on quarterly basis. At present the interest is 7.40% per annum which is effective from 01 April 2020. The rates will remain the same till September 30. Rates are reviewed on 31 March, 30 June, 30 September and 31 December.
Who can take advantage of this scheme
- Senior citizens who are more than 60 years of age.
- Those who have taken VRS between the age of 55 to 60 years can also take advantage of it.
- Retired Defense personnel up to the age of 50 years.
- Benefits of this scheme
- Senior Citizen Savings Scheme is a small savings scheme backed by the Government of India, so it is considered one of the reliable and safe options.
- The 7.40% p.a. interest rate is much better than investments like FDs and savings accounts.
- This account can be transferred anywhere in India.
- Under Section 80C of the Income Tax Act, you can claim tax exemption of Rs 1.5 lakh per year for investing in this scheme.
- Under this scheme, interest is paid every three months. Interest is credited to your account on the first day of every April, July, October and January.
Account opening process
To open this account in the post office or public / private banks, you will have to fill a form, along with two passport size photographs, copy of identity proof and other KYC documents will have to be submitted. The advantage of opening an account with a bank is that the interest deposited can be directly credited to the depositor’s savings bank account with the bank branch. Account statements are sent to the depositors through post or email.
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