Senior Citizens Saving Scheme (SCSS)
Reviewed by Jan 29, 2021| Updated on
What is the Senior Citizens Savings Scheme?
The Senior Citizens Savings Scheme (SCSS) was implemented with the main objective of providing daily income for senior citizens in the country after they hit the age of 60 years. The scheme comes with different features and offers individuals a long-term savings option. The SCSS is available throughout the country at the post offices and accredited banks.
SCSS Eligibility Criteria
The following individuals/groups qualify for SCSS option:
Senior citizens of India whose age is 60 years or more.
Retirees who belong to the age group 55-60 years and who have applied for the Voluntary Retirement Scheme (VRS) or Superannuation. Here, the contribution must be made within one month of earning the pension benefits.
Retired military workers who are at least 50 years old.
HUFs and NRIs have no option to invest in this scheme.
SCSS Investment Amount
A person may invest a maximum amount of Rs 15 lakh in an SCSS account (in the multiples of Rs 1,000), individually or jointly. The sum invested in the plan can't surpass the retirement money that was earned. The person may then invest either Rs 15 lakhs or the sum earned as a pension bonus, whichever is less. The account can be opened via cash for a sum less than Rs 1 lakh and by cheque for an amount greater than Rs 1 lakh.
Documents to be Submitted
The documentation that individuals are expected to submit for opening an SCSS account are as follows:
Two passport size photos
Form A must be duly filled and submitted
Proof of identification, such as passport or Permanent Account Number (PAN) Card is required
Individuals are expected to submit proof of address, such as an Aadhaar Card or a phone bill.
Age proof, such as a PAN Card, voter ID, birth certificate, passport, or senior citizen card.
All documents submitted to open an account should be self-attested.
Provident Fund (PF)
A provident fund is a government-managed, mandatory retirement savings scheme used in India, Singapore, and other developing nations.
Earnest money refers to the deposit paid by a buyer to a seller, reflecting the good faith of a buyer in purchasing a home.
An encumbrance is a charge by a party who is not the proprietor against a property.
Property is any physical or virtual entity owned by an individual or jointly owned by a group of individuals.