The Senior Citizen Savings Scheme (SCSS) 2019 will replace the SCSS 2014 is a very good option for retired persons. This scheme got major updates & changes on 7 Nov, 2023 (mentioned below). The SCSS offers an attractive rate of return and interest is paid quarterly. This makes it a perfect product for senior citizens looking for periodic need of funds.
Senior Citizen Savings Scheme SCSS 2019, is administered under small savings department under the Ministry of Finance.
Key Features of Senior Citizen Savings Scheme (SCSS)
The investment is limited to Rs.15 Lakhs per person.
The deposit is restricted to 15 Lakhs or to the extent of Retirement Benefits.
The minimum investment is Rs 1000/-.
Updated – 13 Nov 2023
The government has made following changes on 7 Nov 2023 in the SCSS. These are:
| S. No. | New Change | Earlier Position or Rule |
| 1. | Time taken to invest is increased to 3 months from receipt of retirement benefits | 1 Month was allowed. |
| 2. | Spouse of Central & State Govt Employee can invest financial assistance or aid provided in case employee has crossed 50 Years of age and dies on the job. | No such provision |
| 3. | Changes & ease in recognizing the retirement benefits. It will include commutation of pension scheme. | Definition was limted. |
| 4. | On premature withdrawal 1% will be deducted if investment has not crossed 1 year. | Earlier entire interest was deducted. |
| 5. | No limit in extension of SCSS. Can extended any number of times in block of 3 years. | Earlier SCSS can only be extended for 1 time. |
| 6. | On maturity, if extended by 5 years, the subscriber will get the same ROI as was paid before maturity. | On extension, the prevailing rate was paid. |
| 7. | On extension the maximum allowed amount should not be breached (Rs 30 L) | The earlier amount on the extension was not defined so an amount more than 30 L were extended. |
Who Can Open Senior Citizen Savings Scheme?
All Resident Indian can apply for this scheme. NRIs, Corporate, Minors cannot apply.
The account may be opened by person
- Who has attained age of 60 years or above on the date of opening of the account.
- Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within one months from the date of retirement.
- No age limit for the retired personnel of Defence Services provided they fulfill other specified conditions.
The current Rate of interest is 8.6% per annum. (Dec 2019)
Multiple accounts may be opened with different maturity.
The account may be opened in an individual capacity or jointly with spouse.
The account also has nomination facility.
Senior Citizen Savings Scheme Withdrawal
No withdrawal shall be permitted before the expiry of a period of five years from the date of opening of the account. The depositor may extend the account for a further period of 3 years.
Premature closure allowed after three years.
In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest.
Senior Citizen Savings Scheme Interest Payment
Interest from the date of deposit on quarterly basis. Interest can be automatically credited to savings account provided both the accounts stand in the same post office.
The interest will be payable first from the date or deposit to 31st March /30th June/30 September on the first working day of April /July/October/January, as the case may be, in the first instance.
Then interest will be payable on the first working day of April/ July/October/ January as the case may be.
Senior Citizen Savings Scheme SCSS 2019 Tax Benefit
The investment under this scheme qualifies for the benefit of Section 80C (Rs 1.5 lakh limit) of the Income Tax Act, 1961.
The interest received will be subjected to tax at applicable rates.
Hope our Senior Citizens will make best use of this scheme.
We are happy to help. Send us your question through email or comments section below.
Where can you get an access to this scheme. Where to apply.
Can self employed person avail the benefit?
Thanx for your comments!
Yes, self-employed can apply.
The SCSS account can be opened at any head post office or general post office. Select branches of several designated nationalised banks – Allahabad Bank, Andhra Bank, State Bank of India, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, Vijaya Bank and
IDBI Bank offer the SCSS. ICICI Bank is the only private bank that offers the SCSS.
Happy New Year!