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What is Senior Citizens’ Saving Scheme?

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Every single person wants to make their old age a secure time to spend with their family without much dependency on them. So a Saving Scheme was launched in 2004 sponsored by the government of India for the senior citizens known as Senior Citizen Saving Scheme.

Through this scheme all the senior citizens of India can get access to a regular income as well as to the various tax benefits. This scheme is completely run by the Government of India so all the benefits and interest rates are decided based on the financial needs of the retired citizens.

Anyone fulfilling all the criteria can open the account either individually or jointly with their spouse. But anyone in among the family members can be granted as the nominee for the account.

Where can you open an SCSS account?

Unlike other accounts which can be opened only in any kind authorized bank. The Seniors Citizen Saving Scheme account can be opened in the nearest post offices as well as in any nearest banks.

List of banks where you can open an SCSS account

Here is the list of all banks where you can open an Senior Citizen Saving Scheme

Alphabetical Order

Name of Banks

A Allahabad Bank, Andhra Bank
B Bank of Baroda, Bank of India
C Canara Bank, Central Bank Of India, Corporation Bank
D Dena Bank
H HDFC Bank
I ICICI Bank, Indian Bank, Indian Overseas Bank
P Punjab National Bank
S State Bank Of India, Syndicate Bank
U Union Bank Of India, UCO Bank

Note: Many banks have merged in 2021 like Allahabad Bank, Syndicate Bank, etc. Kindly go through all the necessary details while opening an SCSS account in these merged banks.

Limitations And Eligibility Criteria for opening an SCSS Account

  • For opening the account you must be an Indian citizen. Non-residential Indians are not allowed for this scheme.
  • Hindu undivided families have relaxation in taxation but they don’t qualify for the senior citizen saving scheme.
  • Senior Citizens having 60 or above age are eligible for the scheme.
  • However if someone has voluntarily retired between 55-60 years of age they can also avail this scheme by applying for it within one month of receiving the retirement benefits.
  • It is applicable for all the defence personnel above 50 years of age.
  • The minimum amount required to create an account under this scheme is INR 1000.
  • An individual account holder can open many accounts under the same scheme but the total sum of the amount in all the accounts should not exceed the maximum deposit value which is INR 15lakhs.
  • More than one account cannot be opened in the same branch within a time period of one month.

Steps to open an SCSS Account in a bank

Step 1: Visit your nearest bank.

Step 2: Request for the account opening form and carefully fill up all the required fields.

Step 3: You need to carry your identity proof (Aadhar card/ Pan Card/ Driving Licence, etc), Age proof, Address proof, Retirement benefit acceptance date, and updated passport size photographs.

Step 4: Mention the nominee name and for a joint account provide your spouse name and details.

Step 5: After document work you need to deposit the minimum amount of INR 1000 to make your account functional.

Steps to open an SCSS Account in the Post Office

Step 1: Visit your nearest post office.

Step 2: Request for the account opening form and carefully fill up all the required fields.

Step 3: You need to carry your identity proof (Aadhar card/ Pan Card/ Driving Licence, etc), Age proof, Address proof, Retirement benefit acceptance date, and updated passport size photographs.

Step 4: Mention the nominee name and for a joint account provide your spouse name and details.

Step 5: After document work you need to deposit the minimum amount of INR 1000 to make your account functional.

What are the benefits of the SCSS Account?

  • You will get insurance cover in case of any uncertainties. Know more about the reimbursement categories of HDFC Bank.
  • The current interest rate (July 25, 2021) of a Senior Citizen Saving Scheme account is 7.4% per/annum.

Deposit Amount

Interest Rate

Interest per month

Rs 1,000 7.4% Rs 6.1666
Rs 10,000 7.4% Rs 61.666
Rs 1,00,000 7.4% Rs 616.666
Rs 15,00,000 7.4% Rs 9249.99
  • Maturity period of the SCSS account is 5 years, however it can be increased to 3 more years.
  • All investments done through the Senior Citizen Saving Scheme are free of Income Tax( Section 80C).

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