The Senior Citizens Savings Scheme (SCSS) is a government-backed savings initiative tailored for senior citizens to ensure a secure and regular income post-retirement. With guaranteed returns, tax benefits, and a straightforward process, it is one of the most reliable financial tools available for retired individuals in India. This scheme is available through Post Offices and authorised banks, providing flexibility and accessibility to investors. Here’s everything you need to know about this scheme.

Features

1. Tenure and extension: The scheme has a maturity period of 5 years, which can be extended by an additional 3 years. To extend, individuals must submit an application during the last year of the original tenure.
2. Interest rate: SCSS offers an attractive interest rate of 8.2% per annum, effective from April 1, 2024, and interest is credited quarterly. This regular payout provides steady income for senior citizens.
3. Deposit limits: Investments start at a minimum of ₹1,000 with a maximum limit of ₹30 lakh, in multiples of ₹1,000.
4. Nomination facility: Nominees can be added or modified at the time of opening the account or any time later, ensuring family security.
5. Mode of deposit: Deposits below ₹1 lakh can be made in cash, while amounts above ₹1 lakh require payment via cheque.
6. Premature closure: The scheme allows premature closure with specific penalties. If closed before 1 year, any interest paid is deducted. For closures between 1-2 years, a penalty of 1.5% is levied on the principal. After 2 years, a 1% penalty applies.
7. Account transfer: SCSS accounts can be easily transferred between Post Offices and authorised banks for convenience.