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Everything To Know About Senior Citizens Savings Scheme

Investing in Senior Citizens Savings Scheme (SCSS) is a good opportunity for senior citizens above 60 years to make money. This is an effective and long-term saving option which offers security and added features that are usually associated with any government-sponsored savings or investment scheme. These schemes are available through certified banks and post offices across India.

It is eligible for Senior citizens of India aged 60 years or above. Retirees who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation in the age bracket 55-60 can also apply for this. Here the investment has to be done within a month of receiving the retirement benefits. Retired defense personnel with a minimum age of 50 years also get a chance to invest in this scheme. HUFs and NRIs are not allowed to invest in this scheme.

Benefits of Investing in Senior Citizens Savings Scheme (SCSS)

The benefits of investing in senior citizens savings scheme are as follows: 

1. Safe and Reliable

This is an Indian government-sponsored investment scheme and hence is considered to be one the safest and most reliable investment options. This is purely an Indian product and hence it is termed as the most opted option by the senior citizens. 

2. Simple And Easy Process 

The process to open a Senior Citizens Savings Scheme account is simple and can be opened at any authorized bank or any post office in India. It is also transferable across India.

3. Good Returns And Nominations

At 7.4% p.a. The return rate is very good as compared to a savings or FD account. Nomination facility is available at the time of opening an Senior Citizens Savings Scheme account by means of submitting an application as part of Form C. This submission is also accompanied by the passbook to the Branch.

4. Tax Benefits And Flexibility 

This also offers a lot of tax benefits. Tax deduction of up to Rs 1.5 lakh can be claimed under Section 80C of the Indian Tax Act, 1961. The tenure of this investment scheme is flexible with an average tenure of 5 years which can be extended up to 3 additional years.

How To Open A Senior Citizens Savings Scheme Account?

A Senior Citizens Savings Scheme account can be opened in any of the authorized banks or post office branch across India with following documents:

Step 1- Form A has to be filled for opening a Senior Citizens Savings Scheme Account.

Step 2- Identity proof like PAN card, Passport to be presented.

Step 3- Address proof such as Telephone bill, Aadhar card is mandated.

Step 4- Age Proof Document is required. This could be in the form of a Passport, Senior Citizen Card, a Birth certificate issued by the Corporation or registrar of births and death, Voter ID card, PAN card etc.

Step 5- 2 Passport size photographs. All the above documents must be self-attested.

Conclusion

To sum it up, Senior Citizens Savings Scheme is a very good scheme for senior citizens who want a decent risk free return on a corpus fund. For example, at an 7.4% interest rate and an investment amount of 15 lakhs, the monthly income is stated to be Rs 10,625 per month for each investor.

Also read - Saral Jeevan Bima - Features, Benefits, Details, etc.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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