Senior Citizens Saving Scheme
State: Central
Ministry: Ministry Of Finance
Department: Department of Financial Service
Category: Banking,Financial Services and Insurance
Beneficiary Type: Individual

Introduced in 2004 by the Govt. of India, SCSS offers a steady stream of income for individuals over 60 years old. As it is a government-backed scheme, there is minimal risk associated with SCSS. Individuals can apply for this scheme in post offices and public and private banks.

Benefits:
Benefits:
Hassle-Free Process: Individuals can open their accounts at any post office or authorized bank in India.
SCSS Tax Benefits: Under Section 80C of the Income Tax Act, the principal amount invested in this scheme is eligible for deduction up to a limit of ₹1.5 lakhs in a year. Furthermore, interest earned on SCSS is taxable according to an individual’s tax slab. However, if the amount exceeds ₹50,000 for a fiscal, TDS (Tax Deducted at Source) is applicable.
High-Interest Rate: SCSS offers an interest rate of 7.4% per year.
Features:
Varying Interest Rates: The SCSS interest rate is modified once in every 3 months. Therefore, this rate of interest is subject to revision 4 times in a year.
Assured Returns: The returns on this scheme are issued as it is a government-backed instrument. Moreover, contrary to market-linked investments, which are subject to fluctuations, SCSS is safe and offers assured returns to individuals.
Maturity Duration: SCSS comes with a maturity period of 5 years. That said, one can extend the scheme for another 3 years by submitting a duly filled-up Form B. Nonetheless, in this regard, the interest rate as per the quarter is levied.
Deposit Limit: Individuals can deposit a minimum of ₹ 1,000 to open their accounts. Moreover, one can deposit ₹ 15 lakh or the amount of retirement benefit, whichever is lower.
Account Closure: Deductions are made against premature withdrawals. If closed before a period of 2 years, 1.5% deduction will be made as a penalty. Furthermore, if closed after 2 years, 1% is deducted. However, for extended accounts, one can withdraw funds post one year without attracting penalties.
Quarterly Disbursals: One can expect quarterly disbursements against the deposited amount. The interest gets credited to the account on the 1st of April, July, October, and January.
Nomination Option: The account holder can register a nominee to the Senior Citizens Saving Scheme. So, if the account holder passes away before maturity, the nominee will receive the due amount.

Eligibility:
1. Indian citizens above the age of 60 years
1. Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation*
1. Retired defense personnel above 50 years and below 60 years of age*

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**(*Investment must be made within a month of availing the retirement benefits.)**

Application Process:
[Offline]
Visit your nearest bank branch or post office and collect the application form.
Submit the duly filled-up form along with the self-attested copies of the required documents.

[Online]
One can open an SCSS account online if his/her bank offers this facility. Banks offering Senior Citizens’ Savings Scheme include the following: State Bank of India, Bank of Baroda, ICICI Bank, Bank of India, Corporation Bank, Punjab National Bank, UCO Bank, Allahabad Bank, Syndicate Bank, Union Bank of India

Documents Required:
KYC Documents: Aadhaar Card, Voter ID Card, PAN Card, Passport
Utility Bills: Telephone bill, Electricity bill
Senior Citizen Card or Birth Certificate (Case Specific)
2 passport-size photographs