The Senior Citizens Savings Scheme (SCSS) is a government-backed retirement savings option designed for individuals aged 60 and above, offering stable returns and regular income.
The scheme currently provides an interest rate of 8.2 percent per annum, with investments ranging from ₹1,000 to ₹30 lakh for a tenure of five years.
Individuals aged 60 years and above can open an SCSS account
Those aged 55–60 years are also eligible if they invest within one month of receiving retirement or superannuation benefits, including under voluntary retirement schemes (VRS)
Retired defence personnel, including civilian staff, can invest from the age of 50, subject to the same one-month condition
Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to invest in the scheme.
Investors are allowed to open multiple accounts, but joint accounts are permitted only with a spouse. In such cases, the primary account holder is treated as the main investor.
Minimum investment: ₹1,000
Maximum investment: ₹30 lakh (in multiples of ₹1,000)
Interest rate: 8.2 percent per annum
Payout: Quarterly interest payments
Tenure: Five years, extendable by an additional three years
For deposits above ₹1 lakh, payment must be made via cheque, while smaller amounts can be deposited in cash.
The scheme is considered relatively safe as it is backed by the government, ensuring capital protection and predictable returns.
Investments in SCSS qualify for tax deductions of up to ₹1.5 lakh under Section 80C of the Income-Tax Act.
However, interest income is taxable. Tax Deducted at Source (TDS) applies if:
Annual interest exceeds ₹1 lakh for senior citizens
Annual interest exceeds ₹50,000 for others
SCSS accounts can be opened at authorised public sector banks or post offices. Applicants need to submit:
Filled application form
Passport-size photographs
Identity proof (Aadhaar, PAN, or passport)
Address proof (self-attested copies)
The scheme also offers flexibility:
Nominees can be added or changed at any time
Accounts can be transferred between banks and post offices
Premature closure is allowed, but with penalties:
Closure before one year: interest already paid will be recovered
Closure between one and two years: 1.5 percent penalty on principal
Closure after two years: 1 percent penalty
Overall, SCSS remains a popular choice among retirees seeking steady income, tax benefits, and low-risk investment backed by the government.