Senior Citizen Savings Scheme

Senior Citizen Savings Scheme: Benefits, Eligibility & Account Opening

Sarkari Yojana

Senior Citizen Savings Scheme: Benefits, Account Opening, Eligibility & More

Senior Citizens Savings Scheme is one of the best options for individuals looking to invest their money for the long term. This scheme offers attractive features and unmatched security, making them an ideal choice for senior citizens. One of the main benefits of these schemes is that they offer a higher rate of interest than traditional savings accounts. This means that senior citizens can earn more on their investments over time. In addition, the Senior Citizens Savings Scheme is backed by the government, ensuring that your investment is safe and secure. 

SCSS Benefits

The Senior Citizens Savings Scheme offers several benefits that make it an attractive investment for those over the age of 60. One of the main advantages is the tax benefits that are available. The scheme is also safe to invest in, and premature withdrawal is allowed in some cases. Another benefit is that the account can be transferred across the country if you move. Finally, high-interest rates are offered, making it a great way to grow your savings.

How to Open an SCSS Account?

The process of opening an SCSS account is quite simple and can be done at most banks or post offices. Applicants simply have to submit an application form along with some KYC documentation, including a copy of their ID and a recent photo. Providing a check for the deposit amount is also required. In case of death or incapacitation, you can add nominees to your account who can access the funds.


Here we will look at the eligibility of SCSS:

  • The SCSS is a retirement savings scheme that is open to Indian citizens who are aged 60 years or above. To open an account, individuals must meet the following criteria: 
  • They must be aged 60 years or above at the time of account opening, 
  • They must be retired on superannuation (i.e. they have reached the age of 55 years old and have retired before the implementation of SCSS rules), 
  • They must be residents of India. 
  • NRIs and HUFs are not eligible to open an account under the scheme. 

The SCSS offers several benefits to account holders, including a guaranteed return on investment and income tax benefits. 

Features of the Scheme

The Senior Citizens Savings Scheme (SCSS) offers a number of benefits for older citizens who are looking for a safe investment option. 

  • One of the main features of the SCSS is its maturity period. The scheme has a 5-year maturity period, but account holders can extend this by 3 years if they submit an application within one year of the account maturity date. 
  • Another key feature of the SCSS is those account holders are allowed to add nominations to their account, both at the time of opening an account and after the account has been opened. This flexibility gives account holders peace of mind knowing that their savings will be taken care of in case of an emergency. 
  • One of the main advantages is the easy process of transferring an account from a bank to a post office. 
  • Additionally, premature withdrawal is allowed after one year, although there is a charge of 1.5% for withdrawals made after two years.
  • Finally, SCSS account holders are allowed to open more than one account, either by themselves or jointly with their spouses. Joint accounts can only be opened with the spouse, and the initial depositor is considered the investor in the joint account. 

List of Banks Offering SCSS

The following banks are part of the scheme:

  • Union Bank of India
  • UCO Bank
  • Punjab National Bank
  • ICICI Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Dena Bank
  • State Bank of India
  • Central Bank of India
  • Corporation Bank
  • Bank of India
  • Canara Bank
  • Bank of Maharashtra
  • Bank of Baroda


SCSS Interest Rate

The interest rate on the Senior Citizen Savings Scheme (SCSS) is 7.4% per annum. This is a high rate of return when compared to savings and fixed deposit (FD) accounts. The interest is payable on the deposit date of March 31, September 30, and December 31. Thereafter, interest is payable on March 31, June 30, September 30, and December 31. 


Quarterly interest payments are available only at Core Banking-enabled post offices. SCSS offers a safe and secure investment option for senior citizens with guaranteed returns. The scheme also offers flexibility in terms of withdrawal and premature closure.

Last Say

The Senior Citizen Savings Scheme is a great way to save money and receive tax benefits. If you are over 60 years old, this may be the perfect savings option for you. Contact your nearest bank to learn more about the Senior Citizen Savings Scheme today.


Q1. Which savings scheme is the best for senior citizens?

The best options for senior citizens are as follows:

  • Pradhan Mantri Vaya Vandana Yojana (PMVVY)
  • Senior Citizen Savings Scheme (SCSS)
  • Senior Citizen Fixed Deposits
  • Post Office Monthly Income Scheme (POMIS) 
  • Mutual Funds.

Q2. Can both spouses separately open accounts?

Yes, both spouses can open separate accounts. The deposit limit for a single account is a maximum of Rs.15 lakh. Moreover, these accounts must comply with the rules of the scheme. By having separate accounts, each spouse can better manage their finances and reach their financial goals. Furthermore, this can also help to prevent disputes between spouses about money.

Q3. Are there any fees associated with nomination, change, or cancellation?

As per the scheme guidelines, no fee is charged for nominating a beneficiary or making changes to an existing nomination. Cancellation of a nomination can also be done free of charge. This makes the scheme accessible to all and ensures that everyone has an equal opportunity to benefit from it.

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