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Senior Citizen Savings Scheme (SCSS) – Eligibility, Features and Interest Rates. 

The senior citizen saving scheme is a programme for senior citizens that provide benefits after retirement. This scheme provides a steady income stream with the highest safety and tax-saving benefits. It is a savings instrument backed by the Government of India and offered to individuals aged over 60 years. The scheme has a maturity period of five years. But the tenure can be extended by three more years after the maturity period of five years is over in some scenarios.  

Finance Minister Nirmala Sitaraman has announced that from 1 April 2023, the senior citizens saving scheme will be extended for a deposit account of ₹30 lacks from ₹15 lacks while presenting the Union Budget on 1 February 2023. 

Features of the Senior Citizens Savings Scheme 

  1. Investment security 

SCSS is a government-backed scheme. Hence, the invested amount is secure, and returns are guaranteed upon maturity.  

  1. Interest payment 

Individuals get the interest paid on their principal deposited amount at the rate fixed by the government. Interest payments will be credited to an individual’s account. 

  1. Mode of deposit 

The investor can deposit cash if the amount is below Rs.1 lakh. And when the deposit amount is above Rs.1 lakh, the investor must make a cheque. 

  1. Maturity period 

SCSS maturity period is 5 years. However, investors can opt for the 3-year maturity period senior citizen scheme by submitting an application.  

  1. Nominations 

The investors can appoint nominees either while opening an SCSS account or after opening the account. 

  1. Number of accounts  

Investors can open more than one senior citizen saving scheme account. They can open another account either by themselves or a joint account with their spouse.  

  1. Deposit amount  

The minimum amount is Rs.1,000, and the maximum is Rs.30 lakh. The deposits can be made in multiples of Rs.1,000. 

  1. Transfer of an account  

The SCSS account is transferable, and if the investor wishes, he can transfer it from a post office to a bank and vice versa.  

  1. Premature closure 

Investors can withdraw their money after one year of opening the account. The investor is not charged for premature closure of the account within one year of opening it. But a 1.5% charge will be deducted from the principal amount if the account is closed after one year but within two years of opening it.  

Eligibility Criteria for Senior Citizen Saving Scheme 

These individuals can open an SCSS account with a Bank: – 

  1. Individuals who are above 60 years. 
  1. Retired civilians who are above 55 years. Although, the investment should be made within 1 month of receipt for retirement benefits. 
  1. Defence retired individuals who are above 50 years and below 60 years. But on one condition, the investment should be made within 1 month of receiving retirement benefits. 
  1. But the Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) are not eligible to open an SCSS. 

SCSS interest rate 

The current interest rate applicable to the senior citizen saving scheme interest rate is 8% p.a. This particular interest rate is applicable from 1st January 2023 until 31st March 2023. The investor will pay the interest on a quarterly basis.  

What are the tax implications of SCSS? 

The amount deposited under SCSS is applicable for tax deduction under Section 80C of the Income Tax Act. And interest earned on SCSS is fully taxable. 

As per the latest revised rate, the government increased the interest rate offered under the Senior Citizen Savings Scheme for the January-March quarter of FY2022-23 to 8 per cent per annum. 

Benefits of having a Senior Citizen Saving Scheme 

There are some reasons why anyone should invest in SCSS: 

  1. As it is a government-backed investment scheme, the investor considers it safe and reliable. 
  1. SCSS account opening is easy and can be opened at any authorised bank or any post office in India. 
  1. The Senior Citizen Saving Scheme account is transferable across India. 
  1. The senior citizen saving scheme interest rate received by the investor is high on their deposit. 
  1. The investor gets an income tax deduction of up to Rs.1.5 lakh under Section 80C of the Indian Tax Act, 1961. 
  1. The scheme that has a 5-year tenure can be extended for another 3 years. 

Documents required to open SCSS account 

  • 2 passport-size photographs 
  • PAN card, Voter ID, Aadhaar card or passport for Identity proof. 
  • Aadhaar card or telephone bill for address proof. 
  • For age proof, PAN card, Voter ID, birth certificate or senior citizen card. 

How to open an SCSS account with a Bank? 

These are the steps that investors can follow to open an SCSS account with an authorised bank. Here they are: – 

Step 1: Individuals can go to the nearest authorised bank branch and collect the SCSS application form.  

Step 2: The individual need to fill in the necessary information on the application form.  

 Step 3: The individual need to attach the required documents.  

Step 4: Thereafter, they need to submit the application form and documents and deposit the money with the bank staff.  

Step 5: The bank will process the application and open the SCSS account.  

Pradhan Mantri Senior Citizen Saving scheme 

Pradhan Mantri Senior Citizen Scheme is also known as the Pradhan Mantri Vaya Vandana Yojana and is a pension scheme for senior citizens offered by the Government of India. It started in May 2017 to provide a fixed and regular source of income to senior citizens who are 60 years of age or above. 

This scheme has a tenure of 10 years and offers a fixed rate of interest. The interest is payable monthly, quarterly, half-yearly or annually, depending on the preferred scheme by the investor. The minimum investment that can be done by the investor in this scheme is Rs. 1.5 lakhs and the maximum investment limit is Rs. 15 lakhs. In case of the investor’s demise during the scheme’s tenure, the nominee will receive the entire invested amount and the accrued interest.   

This scheme is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. But the interest earned on the investment is taxable. 

Senior Citizen Saving Scheme for Post Office 

The Post Office of India exclusively offers this Scheme for senior citizens. It is a government-supported savings scheme that gives regular income to senior citizens. This scheme has a tenure of 5 years, which can be extended for an additional 3 years after maturity.

The interest rate for the scheme is fixed and is revised periodically. The minimum amount that can be invested in SCSS is Rs. 1,000, and the maximum is Rs. 15 lakhs. Investments in the scheme are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.  

What is the process to Fill the SCSS Application Form – Post Office 

Here are the steps that you can follow to open an account in the post office are listed below:  

  • Fill in the branch name. 
  • If you have a savings account at the post office, the account number must be submitted. 
  • Fill up the post office address. 
  • Then, write the name of the account holder. 
  • Now, choose the type of account holder. 
  • Choose the type of account. 
  • Then fill out the details of the amount being deposited. 
  • Fill in the account holder/holders’ details. 
  • Then submit the required documents. 

As a senior citizen, you may be interested in exploring different savings options offered by the Post Office. One such option is the Senior Citizen Saving Scheme, which provides attractive interest rates and benefits for individuals above the age of 60. so Plan your savings effectively with the help of the Post Office FD calculator, which provides estimates of maturity amounts for your investments in the Senior Citizen Saving Scheme.

Which are the other Best Monthly Income scheme for Senior Citizens  

There are several monthly income schemes specifically designed for senior citizens in India.  Some of the investment options are: 

  1. National Pension Plan – The National Pension plan scheme (NPS) is a savings scheme that is available to all citizens of India, including senior citizens. This scheme was launched by the Government of India in 2004 and regulated by the Pension Fund Regulatory. 

Under this scheme, the investors can add extra income apart from their pension accounts during their working years to receive a regular income after retirement. This scheme benefits the investors by offering tax benefits.  

  1. Bank FDs – Many banks offer special FD schemes for senior citizens, typically offering higher interest rates than regular FD schemes.  The investors can opt for their investment’s tenure, which can differ from a few months to several years. The interest rate offered on the investment is fixed for the whole tenure, which makes fixed deposits a safe, secure and convenient investment option. This scheme also provides tax benefits to Senior citizens if they invest in Fixed Deposits under Section 80C of the Income Tax Act, 1961. Anyhow, the interest earned on the investment is taxable.  

Senior citizens can avail of any options of enrolling in FD schemes by visiting a bank branch or online banking. But the only important thing is to compare the interest rates offered by different banks before making an investment decision. It is also advisable to consider the reputation and financial stability of the bank before investing in its FD scheme. 

  1. Mutual Funds – There are numerous curated mutual fund schemes that can be suitable for senior citizens, depending on their investment goals and risk capacity. Some of the popular mutual fund schemes for senior citizens include: 
  • Debt funds: The investor can opt for the Debt funds investment option in fixed-income securities like government securities, Bonds and money market instruments. These funds are comparatively less risky than equity funds and are suitable for senior citizens looking for regular income. 
  • Balanced funds: Balanced funds invest in a mix of equity and debt securities. These funds are suitable for senior citizens willing to take some risk for higher returns. 
  • Monthly income plans: Monthly income plans (MIPs) are debt-oriented mutual fund schemes that invest in a mix of debt and equity securities. These kinds of funds provide regular income to investors. 
  • Fixed maturity plans: Fixed maturity plans (FMPs) are close-ended debt mutual fund schemes that invest in fixed-income securities with a specific maturity date. FMPs are suitable for senior citizens who are looking for a fixed return on their investment. 


The scheme is designed to provide financial security to senior citizens and protect them from the impact of inflation. It is a good investment option for those who want a regular income and ensures their savings are safe and secure. It is a good investment option for senior citizens looking for regular income and wanting to avoid the risks associated with investing in the stock market or other volatile investment options.