Senior Citizen Savings Scheme (SCSS) 2025: Interest Rate, Tax Benefits & Limit

The Senior Citizen Savings Scheme was introduced in the year 2004 as a part of post office savings scheme, to provide financial security to senior citizens who are in need of a steady income post retirement. Residents aged more than 60 years, can individually or jointly open SCSS account. It can either be opened in a post office branch or in a few selected banks. This scheme supports a maximum deposit of Rs.30 lakhs, with a tenure of 5 years which can be further extended to 3 years

Key Highlights

• The current interest rate applicable to SCSS is 8.2% p.a.
• Deduction under section 80C of the Income Tax Act can be claimed for deposit amount.
• Non resident Indians (NRIs) are not eligible to open SCSS scheme account.

Features of SCSS

The following are the features of Senior Citizen Savings Scheme.

Secure Investment

SCSS is a government-backed scheme. Hence, the invested amount is secure and there is guarantee of returns upon its maturity. 

Mode of Deposit

An individual can deposit the money in cash when the amount is below Rs.1 lakh. When the deposit amount is above Rs.1 lakh, an individual should make bank payment.

Maturity and Withdrawal 

• The maturity period of SCSS is 5 years. 
• However, individuals can extend the maturity period for 3 more years by submitting an application. 
• The application for extension should be within one year from the date of maturity.
• Withdrawals from Senior Citizens Savings Scheme accounts will be exempt from tax starting August 29, 2024. 

Nominations

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

Number of Accounts 

Individuals can open more than one SCSS account. They may open another account either by themselves or a joint account with their spouse. However, joint accounts can be opened only with the spouse, the whole deposit amount is attributed to the first account holder only.

Minimum and Maximum Deposit Amount 

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

Transfer of an Account 

An SCSS account can be transferred between a post office and a bank. Also, it is transferrable across India.

Premature Closure

Individuals can withdraw the amount and close the account at any time on an application in Form-2 subject to the following conditions

• Closed before one year - interest paid in the account shall be recovered from the principal amount.
• Closed after one year but before two years - an amount equal to 1.5% will be deducted from the principal amount and shall be levied as a penalty
• Closed after 2 years - 1% of the principal amount will be deducted and shall be levied as a penalty.

Multiple withdrawals from an account shall not be permitted.

Tax Benefits

• Amount deposited to SCSS scheme can be claimed as deduction under Section 80C of the Income Tax Act.
• If the total interest in all SCSS accounts exceeds Rs.1 lakh p.a., TDS will be deducted. 
• If the account is opened by individuals less than 60 years, TDS will be deducted if the total interest exceeds Rs.50,000 per annum. 

Senior Citizen Savings Scheme Interest Rate

The following image illustrates the estimated returns under senior citizen savings scheme for a period of five years.

SCSS Calculator

Check out our Senior Citizen Savings Scheme returns calculator to know the cumulated interest and maturity amount at the end of the term. 

Senior Citizen Savings Scheme - Age Limit and Eligibility

The following individuals can open a SCSS account with a post office or bank:

• Individuals above 60 years.
• Retired civilian employees aged 55 to 60 years can open SCSS account within 1 month of receipt of retirement benefits.
• Retired defense employees aged 50 to 60 years can open SCSS account within 1 month of receipt of retirement benefits.
• Account can be opened in an individual capacity or jointly with spouse only.
• Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to open a SCSS.
• PAN and Aadhar numbers are mandatory to open SCSS account from 31st March, 2023. 

How SCSS Works?

Here is how an SCSS account works:

• Open an SCSS account by depositing a minimum amount of Rs.1,000 up to Rs.30 lakh in a single instalment.
• The deposit amount is restricted to the retirement benefits received.
• It must be deposited within one month from the receipt of retirement benefits.
• Retirement benefits here includes provident fund dues, gratuity, commuted value of pension, leave encashment, savings element of Group Savings Linked Insurance Scheme, retirement-cum-withdrawal benefit under the Employees’ Family Pension Scheme and ex-gratia payments under a voluntary or a special voluntary retirement scheme.
• If the deposit is in excess of the ceiling amount, the excess amount shall be refunded to the account holder immediately.
• Interest on the deposit will be paid once every quarter.
• Interest can be drawn through auto credit into the savings account held at the same Post Office branch or through ECS (Electronic Clearing Service).
• The account can be prematurely closed at any time, after the date of opening.
• The account may be extended for a further period for 3 years from the date of maturity.
• The extension can be done within 1 year from the date of maturity.

You can download the SCSS application form for account opening from the India Post website. You can collect the SCSS application form either at the post office branch or on the official website of the India Post.  

Which Banks Offer SCSS?

The following banks offer SCSS:

Along with these banks, the Post Office also offers SCSS.

Documents Required to Open SCSS Account

• Two passport-size photographs
• Identity proof, such as a PAN card, Voter ID, Aadhaar card or passport.
• Proof of address, such as Aadhaar card or telephone bills.
• Proof of age, such as PAN card, Voter ID, birth certificate or senior citizen card.

All the documents must be self-attested.

Other Articles:  
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2. Post Office Saving Scheme  
3. National Savings Certificate 
4. Post Office Scheme To Double Your Money  
5. Mahila Samman Saving Certificate Scheme  
6. Ponmagan Scheme in Post Office
7. SBI Amrit Vrishti Scheme