In India, the SCSS is regarded as a safe and secure investment option for senior citizens. It provides a steady income and assists them in meeting their financial needs during their retirement years.
How Do I Open A Senior Citizen Savings Scheme (SCSS) Account?
A senior citizen can open an SCSS account at a bank or post office. To open the account, they must make a minimum deposit of Rs 1000 in multiples of Rs 1000, with a maximum deposit of Rs 30 lakh.
There can only be one deposit in the account in multiples of Rs 1000/- with a maximum of Rs 30 lakh. Multiple withdrawals from an account are prohibited.
Who Can Open A Senior Citizens Saving Scheme Account?
An individual who has reached the age of 60 years or older on the date of account opening, or an individual who has reached the age of 55 years or more but less than 60 years and has retired under Superannuation, VRS, or Special VRS, can open an account.
Retired personnel of the Defence Services (excluding Civilian Defence employees) can also open an account after reaching the age of fifty, subject to the fulfillment of other specified conditions.
A depositor can open an account either individually or jointly with his or her spouse. However, the entire amount deposited in a joint account is only attributable to the first account holder.
Interest Rate for Senior Citizens Savings Scheme
Interest is payable from the date of deposit to the 31st March/30th June/30th September/31st December on the first working day of April/July/October/January, as applicable, and thereafter on the first working day of April/July/October/January. The interest rate on the Senior Citizens Savings Scheme is 8.2% for the quarter ending June 30, 2023.
After 5 years from the date of account opening, the account can be closed. The depositor may extend the account for another three years. Premature closure is permitted under certain conditions. SCSS contributions are deductible under Section 80-C of the Income Tax Act.
