Who can invest in the Senior Citizen Savings Scheme?


NEW DELHI: A Senior Citizen Savings Scheme (SCSS) is a retirement benefits scheme backed by the government. A senior citizen can invest in the scheme in a lump sum, individually or jointly, and get access to regular income along with tax breaks.

Here are the following three criteria which can help an Indian resident invest in the scheme.

1. An Indian senior citizen, 60 years or above.


2. While attaining the age of 55-60 years, if you have opted for the voluntary retirement scheme (VRS), you can invest in SCSS.

3. Any retired defence personnel who has attained the age of 50 years and is below 60 years of age can also make investments in the scheme.

HUFs and NRIs are not allowed to invest in SCS Scheme.


You can open an SCSS account at any authorised bank or any post office in India. While opening an account you can make a minimum deposit of Rs1,000 up to 15 lakh in a single instalment. The SCSS account is transferable across the country. The account is initially opened for a period of five years which can be extended by three years.

It is among the safest investment options for senior citizens.

While investing, a senior citizen can avail an income tax deduction of up to 1.5 lakh under Section 80C of the Income Tax Act. Currently, the interest rate applicable on SCSS is 7.4% per annum.


Under the scheme, interest payouts are quarterly and get credited on the first day of April, July, October, and January every financial year.

A premature withdrawal from the account attracts a penalty. Withdrawals are permissible after the completion of one year, with the penalty varying between 1% and 1.5% of the deposited amount.


Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.


Never miss a story! Stay connected and informed with Mint.
our App Now!!

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook


We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News


Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More