Senior Citizen Saving Scheme

SCSS is an excellent investment option for senior citizens looking for long-term saving schemes which offer security with other additional benefits.

Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument offered to Indian residents having age over 60 years. This deposit will be matured after 5 years from the date of account opening but can be extended only once for additional 3 years (Total — 7 Years).

You can avail the scheme from Post offices and recognized banks all around India.

Some Key Features of Senior Citizen Saving Scheme

• Minimum Investment — 1,000/- Per Person
• Maximum Investment — Rs. 15,00,000/- Per Person
• Minimum entry age — 60 Years
• Rate of Interest (From 01–04–2020) — 7.4% per annum (Interest paid quarterly)
• By investing Rs.15 lac one could earn Rs. 27,750 every quarter (1,10,000/ year)

Benefits Of Senior Citizen Saving Scheme

1. Highest Interest rate (7.4% per annum) among all the investment options available for Senior Citizens
2. 100% Safe investment option
3. As the term of investment is only 5+3=7 years, it act as medium term investment
4. Interest earned will be Tax free under Section 80C

Eligibility Criteria for SCSS

List of Banks Offering SCSS

• State Bank of India
• Bank of Maharashtra
• Bank of Baroda
• Punjab National Bank
• Indian Bank
• Corporation Bank
• Canara Bank
• Dena Bank
• Syndicate Bank
• Central Bank of India
• UCO Bank
• Union Bank of India
• Andhra Bank
• Allahabad Bank
• Indian Overseas Bank
• United Bank of India

Rate of Return over 10 Years

Premature Withdrawal

Premature withdrawals are allowed, but only after one year and with premature withdrawal charges.

If one prematurely withdraws after one year, but before two years from the start date, the charges are 1.5% t of the deposit, and after 2 years it is 1%.

Originally published at https://www.investindias.com on January 22, 2021.