Senior Citizen Savings Scheme (SCSS) is a post office savings scheme for senior citizens that also saves income tax. The scheme offers 7.4% interest rate (effective from 1st July 2021) and can be determined with the help of Senior Citizen Savings Scheme calculator. To take advantage of this central government scheme, candidates can fill the online application. All investments in this savings scheme are eligible for tax benefits under 80C of the IT Act. The SCSS account maturity period (lock-in period) is only 5 years and the maximum limit is Rs. 1.5 million.
The SCSS interest rate chart shows that the scheme is applicable to other post office schemes like National Savings Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana (SSY), Recurring Deposit – RD Account, K. is together. Post Office Savings Account, Time Deposit Account (TD), Monthly Income Scheme (MIS) – Check NSC Vs PPF Vs KVP Vs SSI Vs RD Vs TD Vs SCS Vs MIS Vs Post Office Savings Scheme.
NRIs and HUFs are not allowed to invest in this scheme. People can first check SCSS interest rate chart, compare it with other schemes. People can compare all post office schemes before investing.
Senior Citizen Savings Scheme Interest Rate 2021
central government. Every year SCSS fixes the interest rate which is currently 7.4% per annum (from 1st July 2021 to 30th September 2021).
Post Office Interest Rates Table 2021
|Post Office Savings Scheme||Rate of interest|
|National Savings Certificate (NSC)||6.8% p.a. compounded but payable on maturity|
|Public Provident Fund (PPF)||7.1% compounded annually|
|Kisan Vikas Patra (KVP)||6.9% compounded annually|
|Senior Citizen Savings Scheme (SCSS)||Interest will be payable at 7.4% p.a. from the date of first deposit on 31st March / 30th September / 31st December and thereafter on 31st March, 30th June, 30th September and 31st December.|
|Post Office Recurring Deposit Account (RD)||5.8% compounded quarterly per annum|
|Fixed Deposit Account (TD)||5.5% to 6.7% per annum calculated quarterly|
|Sukanya Samriddhi Yojana (SSY)||7.6% compounded annually|
|Post Office Monthly Income Scheme (MIS)||6.6% p.a. payable monthly|
|Post Office Savings Bank Account||4% p.a.|
Senior Citizens Savings Scheme interest rate is at par with fixed deposits (FDs) in banks. But SCSS 2021 follows an advantage that FD interest is paid annually whereas SCSS interest is paid quarterly. It would be around 8.5%. Which can be checked through Senior Citizen Savings Scheme Calculator.
SCCSS 2021 interest is not tax free and has to be paid as per income tax slab rates. However, people will get tax benefits under 80C of the IT Act. TDS @ 10% will be deducted if the interest in the financial year exceeds Rs. 50,000
Senior Citizen Savings Scheme Account Opening and Eligibility
Senior Citizen Savings Scheme can be opened in any post office in India. Candidates can also avail Senior Citizens Savings Scheme in Banks. central government. SCSS account opening is allowed in various nationalized banks like SBI, HDFC, Canara Bank to ensure high reach and easy access. For an amount less than Rs. 1 lakh, customers can open their account in cash but for more than Rs. 1 lakh, customers will have to pay through cheque.
Individuals can fill the application form in Form A along with pay-in-slip in Form D. Any individual who falls under the below mentioned categories can open Senior Citizen Savings Scheme Account:-
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- Person who is 60 years of age or more.
- Any person between the age of 55 to 60 years and has retired on Retirement/Voluntary Retirement Service (VRS). However, the candidate has to open his account within one month from the date of receipt of retirement benefit and the maximum investment amount should not exceed the retirement benefit.
- Retired Defense Service personnel (except Civil Defense employees) will be eligible to open an account under this scheme on attaining the age of 50 years subject to fulfillment of other specified conditions.
SCSS offers Sovereign Guarantee, Capital Protection and Quarterly Interest Payment which acts as a source of income.
Senior Citizen Savings Scheme – Nomination Facility
Subscribers are allowed to open single account/joint account with spouse. The spouse may or may not be a senior citizen. Accordingly, only the age of first application will be considered for opening Senior Citizen Savings Scheme Account. Subscriber can nominate any person (selected nominee) at the time of account opening or post account opening by filling up the application in Form C.
In SCSS, any customer can operate more than 1 account in individual capacity or jointly. In joint account also the maximum limit is still Rs. 15 lakhs only (in multiples of Rs.1000). Thereafter, individuals can open any number of accounts but the total balance (adding balance across all individual accounts) should be less than the maximum limit of Rs. 1.5 million.
Senior Citizen Savings Scheme – Maximum / Minimum Amount
There will be only 1 deposit in the SCSS account in multiples of Rs. 1000 under SCSS Rules, 2004. Thus the minimum amount to be deposited is Rs. 1000 while the maximum amount is Rs. 1.5 million. There can be only 1 deposit in one account but a person can open multiple accounts in the post office.
However, the maximum amount received by an individual for retirement benefits or Rs. 15 lakhs (whichever is less).
Check investment/lock in/risk of other post office savings scheme
Individuals can compare all post office schemes on the basis of maturity period (lock-in period), minimum and maximum opening amount and risk factors.
NSC vs PPF vs KVP vs ELSS vs SCSS vs RD vs TD vs SSY vs MIS vs PO Savings Account
|Investment||lock in period||Minimum/Maximum Investment||risk|
|National Savings Certificate (NSC)||5 years||Minimum amount Rs. 100 and no maximum limit||risk free|
|Public Provident Fund (PPF)||15 years||Minimum amount Rs. 500 and the maximum amount is Rs. 1.5 lakh||risk free|
|Kisan Vikas Patra (KVP)||9 years 10 months||Minimum amount Rs. 1000 and no maximum limit||risk free|
|ELSS Fund||3 years (12 to 15% expected return)||Minimum amount Rs. 1000 and no maximum limit||market risk|
|Senior Citizen Savings Scheme (SCSS)||5 years||Minimum deposit Rs. 1000 and maximum Rs. 1.5 million||risk free|
|Recurring Deposit (RD)||5 years||Minimum Rs. 10 per month and no maximum limit||risk free|
|Fixed Deposit Amount (TD)||1 to 5 years||Minimum Rs. 200 and no maximum limit||risk free|
|Sukanya Samriddhi Yojana (SSY)||Till 21 Years||Minimum Rs. 1000 and maximum Rs. 1.5 lakh||risk free|
|Post Office Monthly Income Scheme (MIS)||5 years||Minimum Rs. 1500 and up to Rs. 4.5 lakh||risk free|
|post office savings account||no lock in duration||Minimum balance Rs. 50 (non-cheque) and Rs. 500 (cheque) and maximum Rs. 1 Lac||risk free|
Post Office Senior Citizen Savings Scheme 2021 – List of Documents
To invest in SCSS, candidates need to submit the following documents:-
- Filled in application form which is available in post office or bank
- Know Your Customer (KYC) Form
- Recent photograph of applicants
- Permanent Account Number (PAN) Card
- Aadhar Card
- address proof
- Date of distribution of retirement benefits
- age proof
- For retired personnel, a certificate from the employer containing information about retirement whether on retirement or VRS.
Senior Citizen Savings Scheme 2021 – Key Features at a Glance
Important features and salient features of Senior Citizen Savings Scheme 2021 are as follows:-
|who can open|
|(i) a person above 60 years of age.
(ii) Retired civilian employees above 55 years and below 60 years of age, subject to the condition that the investment is to be made within 1 month of receipt of retirement benefits.
(iii) Retired Defense personnel above 50 years and below 60 years of age, subject to the condition that the investment is to be made within 1 month of receipt of retirement benefits.
(iv) The account can be opened in individual capacity or only jointly with the spouse.
(v) The entire amount deposited in the joint account shall be attributable to the first account holder only.
|(i) Minimum deposit of Rs. 1000 and in multiples of 1000, subject to a ceiling of Rs. 15 lakh in all SCSS accounts opened by an individual.
(ii) If any excess deposit is made in the SCSS account, the excess amount will be refunded to the depositor immediately and only PO Savings Account interest rate will be applicable from the date of excess deposit till the date of withdrawal.
(iii) Investment under this scheme is eligible for the benefit of section 80C of the Income Tax Act, 1961.
|(i) Interest shall be payable on quarterly basis and shall be applicable from the date of deposit till 31st March/30th June/30th September/31st December.
(ii) In case the interest payable every quarter is not claimed by the account holder, no additional interest will accrue on such interest.
(iii) Interest can be withdrawn through auto credit in the savings account located in the same post office or ECS. In case of SCSS account in CBS Post Offices, monthly interest can be credited to Savings Account at any CBS Post Office.
(iv) Interest is taxable if the aggregate interest in all SCSS accounts in a financial year exceeds Rs. 50,000/- and TDS at the prescribed rate will be deducted from the total interest paid. No TDS will be deducted if Form 15G/15H is submitted and the interest earned does not exceed the prescribed limit.
|(i) The account can be prematurely closed at any time after the date of opening.
(ii) If the account is closed before 1 year, no interest shall be payable and if any interest paid in the account shall be recovered from the principal.
(iii) If the account is closed after 1 year but before 2 years from the date of opening, an amount equal to 1.5% of the principal amount will be deducted.
(iv) If the account is closed after 2 years but before 5 years from the date of opening, an amount equal to 1% will be deducted from the principal amount.
(v) The extended account can be closed without any deduction after the expiry of one year from the date of extension of the account.
|closing the account on maturity|
|(i) The account can be closed after 5 years from the date of opening the account by submitting the prescribed application form along with passbook at the concerned post office.
(ii) In case of death of the account holder, the account will earn interest at the rate of PO Savings Account from the date of death.
(iii) If the spouse is a joint holder or a sole nominee, the account can be continued till maturity if the spouse is eligible to open a SCSS account and the other is not a SCSS account.
|(i) The account holder can extend the account for a further period of 3 years from the date of maturity by submitting the prescribed form along with the passbook at the concerned post office.
(ii) The account can be extended within 1 year of maturity.
(iii) The extended account will earn interest at the rate applicable on the date of maturity.
|Senior Citizen Savings Scheme Rules|
For more details visit the official website- indiapost.gov.in