Senior Citizens Get The Additional Benefit Of Higher Interest On Their Savings

Senior Citizen Savings Scheme

Senior citizens have played a stellar role in national development over the years. The government recognizes their efforts and contributions by rewarding them with various concessions in life. For example, they get benefits on railway tickets. Similarly, banks pay higher interest rates on senior citizen deposits. The government has introduced a new savings scheme for senior citizens that offers the highest interest rates among all banks and financial institutions. This article discusses the Senior Citizen Savings Scheme in detail.

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Who can open a Senior Citizen Savings Scheme Account?

Individuals above 60 years can open a Senior Citizen Savings Account in a post office or a bank. Here is the scheme in brief.
  • Eligibility – Individuals above 60 can open the account in their single names. A joint account with the spouse is allowed.
  • Deposit Tenure – It is a fixed deposit scheme for five years
  • Maximum Investment – The maximum deposit allowed in this scheme is Rs 15 lakhs.
  • Interest Rate – The Post office offers an interest rate of 7.4% per annum.
Besides senior citizens above 60 years, who are the other individuals who can open the SCSS account?
  1. Individuals above 55 and below 60 years who have retired from their service on attaining superannuation can open an SCSS account.
  2. Defense personnel can open an SCSS account on retirement from their services irrespective of age. However, they have to satisfy specific conditions.
  3. NRIs and HUF are not eligible to open an SCSS account.

The Objective of the Senior Citizen Savings Scheme Account

The primary objective of the SCSS account is to enable senior citizens to get a regular source of income after they attain the age of 60 years.

The Documents Necessary to Open an SCSS Account

Individuals desirous of opening an SCSS account should submit the following documents when opening the account.
  • Two PP photographs
  • Form A filled and submitted
  • ID proof documents include passport, PAN card, and others
  • Address proof documents like Aadhar card, utility bill, etc.
  • A document verifying the individual’s age, like PAN card, Voter ID, Birth certificate, Senior Citizen Card, passport, etc.

The Features of the SCSS Account

The primary features of the SCSS account are as under.
  • Extend the scheme’s maturity – Initially, the scheme has a maturity of five years. However, individuals can apply for extending the maturity by three years within one year of the account maturing.
  • Number of Accounts – Individuals can operate multiple accounts or open a joint account with their spouse alone. However, the initial depositor is treated as the original investor.
  • Minimum Amount of Deposit – This deposit account can have a single credit with a minimum of Rs 1000 and a maximum of Rs 15 lakhs. Deposits less than Rs 1 lakh can be paid in cash, whereas a cheque is essential for deposits more than Rs 1 lakh.
  • Nominations – The depositor can add the nomination at the time of opening the account or even after opening the account.
  • Transferable – The account is transferable from a bank to a post office and vice versa.
  • Premature withdrawals – Premature withdrawals are allowed after one year. There is a penalty of 1.5% for withdrawals after one year and 1% for withdrawals after two years.
  • Tax benefits are available under Sec 80C of the IT Act for investments up to Rs 1 lakh. The banks and post offices deduct TDS if the interest generated is more than Rs 10000 per annum.

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Which is better – the SCSS account or the Shriram Chits Schemes?

Bank or post office deposits do not compete with chit fund schemes like the 10-months chit scheme because the rules applicable to these instruments are different.

  • Bank deposits like the SCSS offer an interest rate of 7.4%. It was nearly 8.7% about three years ago. In contrast, the Shriram Chits Schemes can provide better returns.
  • While Shriram Chits Schemes can have decent safety ratings, you cannot say the same about the hundreds of 10-months chit schemes running throughout India. These chit funds are not 100% safe, whereas the government guarantees the SCSS account deposits.

So, from the viewpoint of the safety of funds, the SCSS is better. But, from the liquidity perspective, the 10-months chit schemes can prove to be better. Money Club is also an excellent registered online chit fund platform that offers good returns on your investments. Besides, it is among the popular platforms if you wish to know how to make money fast online.

  • 60 saal se upar ke vyakti post office ya bank mein Senior Citizen Savings Account khol sakte hain.
  • Apne better half ke saath joint account kee anumati hai.
  • yah 5 years ke liye fixed deposit scheme hai.
  • Is yojana mein maximum jama raashi 15 laakh rupaye hai.
  • Post office 7.4% interest per year pradaan karta hai.

Account mein keval ek single deposit kar sakte hai. yah 1,000 rupaye ke multiples mein ho sakta hai aur jama kee ja sakane vaalee maximum amount 15 laakh rupaye hai.


Yes, Indian Tax Act, 1961 kee dhaara 80C ke tahat 1.5 laakh rupaye tak ka tax deduction ka daava kiya ja sakata hai. 10,000 rupaye prati varsh se adhik interest hone par bank aur post office TDS kaattey hain.

Dhan kee suraksha ke drshtikon se, SCSS behatar hai. lekin, liquidity ke najariye se 10 months kee chit scheme behtar saabit ho saktee hain. Money Club bhee ek utkrsht registered online chit fund platform hai jo aapake savings par achchha return pradaan karata hai. iske alaava, yah popular platforms mein se ek hai yadi aap jaannah chahatey hain ki online paisa kaise tejee se banaaya jaye.