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Senior Citizens Savings Scheme

Senior Citizens Savings Scheme is government backed investment scheme designed to provide regular income to the senior citizens of the country i.e., people who are above the age of 60. This is government backed retirement scheme which provides guaranteed returns. This scheme is available at every post office across the country.

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Senior Citizens Savings Scheme

For those over the age of 60, the Senior Citizen Savings Scheme (SCSS) is a preferred fixed-income investment option. The primary aim of this program is to assist senior persons in securing a steady income after they retire. Because SCSS is a government-backed investment scheme, it offers quarterly guaranteed returns. The Senior Citizen Savings Scheme is available in India through approved banks and post offices.

Eligibility Criteria For Senior Citizens Savings Scheme

The following are the SCSS eligibility requirements:

  • A person who has reached the age of 60 or more can open a SCSS account.
  • Individuals who have reached 55 years of age but are under 60 years of age and have retired are eligible to open a SCSS account.
  • Individuals who have reached the age of 55 and have retired before the SCSS rules went into effect are eligible for the scheme.
  • Retired Defence Services people, regardless of age, are eligible for the SCSS. These persons must, however, meet a number of other specific requirements.
  • Non-Resident Indians (NRIs) are unable to open an account with the SCSS.
  • HUFs (Hindu Undivided Families) are also unable to open a SCSS account.

Features Of Senior Citizens Savings Scheme

The following are the key features of the Senior Citizens Savings Scheme:

  • Maturity of the scheme: The scheme has a 5-year maturity period. Individuals can, however, extend the maturity period by three years by submitting an application in the proper forms within one year of the account's maturity date. After the account expires, however, it can be closed without paying any fees.
  • Nominations: When opening an account or after it has been opened, nominations can be added to the policy.
  • Account transfer: An SCSS account can be moved from a bank to a post office or vice versa. The process of making a SCSS account is also simple and straightforward.
  • Premature Withdrawal: Premature withdrawal is allowed after one year from the date of account opening. Premature withdrawals after one year and two years, however, will be charged a 1.5 % and 1% penalty, respectively, of the total amount deposited.

Benefits Of Investing In Senior Citizen Savings Scheme

The following are the main reasons why senior citizens prefer to invest in the Senior Citizen Savings Scheme:

  • High-Interest Rate: With an annual interest rate of 7.4%, SCSS is one of the most profitable investment options, especially when compared to more traditional savings options like FDs and Savings Accounts.
  • Tax Benefit: SCSS is eligible for a tax deduction of up to Rs. 1.5 lakh per year under Section 80C of the Income Tax Act.
  • Clear and simple Investment Process: Investing in SCSS is a simple process. In India, you can open a SCSS at any approved bank or post office.
  • Quarterly Interest Payouts: The interest amount is paid to account holders quarterly under SCSS, ensuring that your investment is maintained over time. Every financial year, interest will be credited on the first day of April, July, October, and January.

SCSS Interest Rate

The SCSS interest rate has decreased from 8.6% to 7.4% at this time. When compared to savings and fixed deposit (FD) accounts, the SCSS has a high return. Interest is payable on the deposit date of March 31, September 30, and December 31, in the first instance, and on March 31, June 30, September 30, and December 31 thereafter. Interest is paid quarterly on the first working day of April, July, October, and January. Quarterly interest payments, on the other hand, are only possible at Core Banking-enabled post offices.

Mentioned below are the interest rates of the SCSS scheme-

Financial Year

Rate of Interest p.a(%)

April to June (Q1 FY 2020-21)


Jan to March (Q4 FY 2019-20)


Oct to Dec 2019 (Q3 FY 2019-20)


Jul to Sep 2019 (Q2 FY 2019-20)


Apr to Jun 2019 (Q1 FY 2019-20)


Jan to March 2019 (Q4 FY 2018-19)


Oct to Dec 2018 (Q3 FY 2018-19)


Jul to Sep 2018 (Q2 FY 2018-19)


Apr to Jun 2018 (Q1 FY 2018-19)


Jan to March 2018 (Q4 FY 2017-18)


Oct to Dec 2017 (Q3 FY 2017-18)


Jul to Sep 2017 (Q2 FY 2017-18)


Apr to Jun 2017 (Q1 FY 2017-18)


Documents Required To Open SCSS Account

Individuals must submit the following documents in order to open a SCSS account:

  • Two passport photographs
  • Form A must be filled out completely and submitted.
  • A passport or a Permanent Account Number (PAN) card must be shown as proof of identity.
  • Individuals must provide proof of address in the form of an Aadhaar card or a phone bill.
  • A document proving the person's age must be presented. PAN Card, Voter ID, Birth Certificate, Senior Citizen Card, or Passport can all be used as proof of age.

List Of Banks That Offer SCSS

Mentioned below are the banks that provide SCSS scheme-

  • ICICI Bank
  • Vijaya Bank
  • Union Bank of India
  • UCO Bank
  • Syndicate Bank
  • Indian Bank
  • Punjab National Bank
  • IDBI Bank
  • Indian Overseas Bank
  • State Bank of India
  • Dena Bank
  • Central Bank of India
  • Canara Bank
  • Corporation Bank
  • Bank of India
  • Bank of Baroda
  • Bank of Maharashtra
  • Andhra Bank
  • Allahabad Bank

Tax Implications Of Senior Citizen Savings Scheme

SCSS investments are also eligible for tax benefits in the following ways:

  • Under section 80C of the Income Tax Act, 1961, the principal amount deposited in SCSS is eligible for a tax deduction of up to Rs. 1.5 lakh each year.
  • SCSS interest is taxable according to the tax band of the individual. Tax Deducted at Source (TDS) is applicable on interest earned if the amount earned is higher than Rs. 50,000 in a fiscal year. From AY 2020-21 onwards, this TDS deduction restriction on SCSS investments will be in effect.

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