• Source:JND
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Senior Citizen Saving Schemes: As people retire, their financial priorities start changing because now, they are more inclined toward stability than wealth creation. Getting a regular fixed income becomes a major financial goal as it provides peace of mind in old age.

Senior Citizen Savings Scheme (SCSS) is a Government of India-backed savings scheme, specially designed for those above 60 years of age. It offers guaranteed returns with quarterly interest payments, making it one of the safest schemes for senior citizens.

Key Features of the Senior Citizen Savings Scheme

Minimum and Maximum Deposit

Members can open an account with a minimum investment of Rs. 1,000 and thereafter can invest in multiples of Rs. 1,000, up to a maximum limit of Rs. 30 lakhs.

Who can apply

- The scheme is available to anyone above 60 years of age. Any person above 55 years of age and retiring under superannuation, voluntary retirement scheme (VRS) or special VRS is eligible to join this scheme.

- Persons serving or retired in the Defence Services (except Civil Defence employees) can open an account even after the age of 50 years - certain conditions apply.

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Guaranteed Return

The interest rate under SCSS is determined and revised by the Government of India every quarter, which guarantees a return for the investment period.

Tax Benefits

The interest earned under this scheme is exempt under Section 10(12) of the Income Tax Act.

Account Tenure and Resignation

The tenure of an SCSS account is 2 years from the date of deposit and 5 years thereafter, after which the account can be closed or extended after that period under special consideration.

Step-By-Step Guide To Open an SCSS Account

- Visit any post office or authorized bank branch.

- Fill out the SCSS application form.

- Submit KYC documents like age proof, identity proof and address proof.

- Provide a cheque for deposit.

The Senior Citizen Savings Scheme aims to provide a continuous income after retirement. Its government support, safe interest rates and tax benefits make it the most reliable option for retirees who want to enjoy life security.

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