Senior Citizens Saving Scheme (SCSS)

This saving scheme option is exclusive to senior citizens in India. Ideally, the applicant must be 60 years or more but those between the ages of 55-60 years, are retired or have opted for VRS, can also apply, provided that the account is opened within one month of the receipt of their retirement benefits. The salient features of SCSS are as follows-

1. Interest rate of 9.3% p.a, payable on any of the following dates in an year- 31st March, 30th June, 30th Sept and 31st December.
2. The tenure of a SCSS portfolio is 5 years.
3. The applicant can make only one deposit into the account. This amount should be in multiples of Rs.1,000 and must not exceed a maximum of Rs.15 lakhs.
4. The account can be transferred from one post office/bank to another.
5. The SCSS account can be closed prematurely, provided the applicant shells out 1.5% of the deposit amount in the first year and 1.0% of the deposit amount in the second year.
6. Post the maturity of the account, the tenure can be extended for a further 3 years. After completing 1 year of this extension period, the account can be prematurely closed without any deductions.
7. TDS is deducted at source on the accumulated interest if the latter exceeds Rs.10,000 p.a.
8. SCSS accounts save tax as per the Section 80C of the Income Tax Act, 1961.