Senior Citizen Savings Scheme (SCSS)

 1-What is the post office Senior Citizen Savings Scheme (SCSS) account?

SCSS is an acronym that stands for senior citizen savings scheme.It is a 5-year investment scheme. The SCSS scheme is specially meant for senior citizens above the age of 60. Those who have completed 55 years of age and have taken voluntary retirement from service can open a senior citizen account. SCSS is a scheme that offers low-risk investment and also significantly cuts down on the payment of taxes.

2- Who is eligible to open an Senior Citizen Savings Scheme account at the post office?

The SCSS scheme is specially meant for senior citizens above the age of 60. Retired Civilian Employees above 55 years of age and below 60 years of age and Retired Defense Employees above 50 years of age and below 60 years of age but there is one condition that, investment should be made within 1 month of receipt of retirement benefits. 

3-What documents are needed to open an Senior Citizen Savings Scheme account?

1-Form A has to be filled in to open an SCSS account.

2-identity proof: PAN card, Passport, Driving License.

3 -Aadhar card is mandatory.

4-Address proof such as telephone bill, Aadhar Card, or voter ID.

5-A document for proof of age is required(Pan Card).

6- Passport size photographs.

4-What is the minimum and maximum limit for an Senior Citizen Savings Scheme account?

Multiple of INR.1000/-maximum should not exceed INR 15 lakh (Single Deposit) 

5-What is the age limit for opening a Senior Citizen Savings Scheme account?

1-Senior citizen above the age of 60.

2-Retired Civilian Employees above 55 years of age and below 60 years of age

3-Retired military employees above 50 years of age and below 60 years of age are eligible, but there is one condition: the investment should be made within 1 month of the receipt of retirement benefits. 

6-What is the locking period(premature closure) for a Senior Citizen Savings Scheme account?

An account can be prematurely closed at any time after the date of opening.

If the account is closed before 1 year, no interest will be given. If interest has already been paid, such interest will be recovered from the principal amount.

An amount equal to 1.5 % will be deducted from the principal if the account is closed after 1 year but before 2 years from the date of opening.

An amount equal to 1 % will be deducted from the principal amount if the account is closed after 2 years but before 5 years from the date of opening.

7-Is there any tax benefit for a Senior Citizen Savings Scheme account?

Investment under a SCSS scheme qualifies for the benefit of section 80C of the Income Tax Act, 1961.

8-How to close a Senior Citizen Savings Scheme account?

SCSS accounts can be closed after 5 years by submitting the prescribed application form along with the passbook to the relevant Post Office.

9-How many Senior Citizen Savings Scheme accounts can be opened in the post office?

Depositors can open more than one account in the post office, subject to a maximum investment limit by adding balances to all accounts.

10-Can we extend the Senior Citizen Savings Scheme account post maturity?

Yes, we can extend our Senior Citizen Savings Scheme account for a further period of 3 years from the date of maturity by submitting the prescribed form with the passbook at the concerned post office. The account should be extended within 1 year of maturity. The extended account will earn saving account interest from the date of maturity.

11-How  interest calculated by Senior Citizen Savings Scheme?

1-Interest is payable on a quarterly basis and applicable from the date of deposit to the 31st March/30th June/30th September/31st December.

2-Unclaimed interest does not earn additional interest.

3-Quarterly interest can be auto-credited into a savings account holder's at any CBS Post Office.

12-Types of Senior Citizen Savings Scheme accounts

SCSS accounts can be opened individually or jointly with a spouse.

13-What happens when account holders die?

If the account holder dies, the SCSS account is closed and the deposit is refunded along with interest to the person named as nominee.

 14-Can we transfer Senior Citizen Savings Scheme accounts to other post offices?

Yes, SSCS accounts can be transferred to another post office.