All About Senior Citizen Saving Scheme

Know all about Senior Citizen Saving Scheme in this investment blog. Know the current SCSS interest rate, why should you invest in SCSS, how to open SCSS scheme

Senior Citizen Saving Scheme or SCSS is the best saving scheme in India when you look for investment or saving scheme for senior citizens. People who fall in 55-60 plus age category become financially dependent again if they are not adequately secured in terms of finance.

Though there are many senior citizen schemes available for senior citizens, but in this investment blog we will specifically look at SCSS Scheme and learn about what is Senior Citizen Saving Scheme, why should you invest in SCSS, how much is Senior Citizen Saving Scheme interest rate, benefits of investing in SCSS, how to open an SCSS account and other details. So let's start

What is Senior Citizen Saving Scheme

The Senior Citizens Savings Scheme (SCSS) is the best saving scheme in India for senior citizens. SCSS is a government-backed savings instrument offered to citizens of India who are above 60 years in age.

The best part of the SCSS scheme is that it offers a regular stream of income with highest security against volatility and tax saving benefits.

So if you have been pondering upon which scheme is best for senior citizens? The Senior Citizens Savings Scheme has to be your apt choice of investment for the people in senior age group.

Why should you invest in SCSS?

Investment in general is crucial for everyone. It safeguards us in the times of financial crisis and serves our financial needs when we want to fulfill life goals. The most vulnerable age group that needs financial support is 60+. People in this age group, if they have not invested in any financial instrument, become more financially dependent.

It is therefore advised to start investing in something to support their old-age.
SCSS comes as a perfect investment companion for senior citizens. The senior citizen scheme is a good opportunity for senior citizens above 60 years to make money.

SCSS offers an effective and long-term saving options with added features that are usually associated with any government supported savings or investment scheme and it is highly secure too.

Some of the benefits of investing in SCSS are:

  • Safe and Reliable: It is Safe and Reliable investment option as government-sponsored investment scheme.
  • Simple and Easy: Opening process is Simple and easy as it can be opened at any authorized bank or any post office in India, plus - it is also transferable across India.
  • Offers Good returns: Previously the return rates were great as they used to surpass FD interest rates, however presently the ROI is 7.4% p.a. which is still good.
  • Offers Nomination Facility: Nomination is available at the time of opening an SCSS account by submitting an application as part of Form C.
  • Tax benefits: You are eligible for tax deduction of up to Rs.1.5 lakh. This can be claimed under Section 80C of the Indian Tax Act, 1961.
  • Flexible: SCSS is flexible as the tenure of this investment scheme is flexible with an average tenure of 5 years and can be extended up to 3 additional years.

Senior Citizen Saving Scheme interest rate

Senior Citizen Saving Scheme have been known to offer good rate of interest. Back in the year 2019, the SCSS interest rate was whopping 9%. But as inflation rose so does the other external factors, the SCSS rate of interest kept on declining. The SCSS interest rate 2020 was around 8.6%.

Presently as on 2021, the Senior Citizen Saving Scheme interest rate is 7.4%

Eligibility and How to open an SCSS account

Eligibility For SCSS
Though Senior Citizen Saving Scheme is the best saving scheme in India for senior citizens, but still there are eligibility criteria that one must be aware of before investing in it. The following people are eligible for starting SCSS:

  • Senior citizens of India aged 60 years or above.
  • Senior individuals who have opted for the Voluntary Retirement Scheme (VRS) in the age bracket 55-60.
  • Retired defense personnel with a minimum age of 50 years.
  • Note: HUFs and NRIs are not allowed to invest in this scheme.

How to open an SCSS account
You can open a SCSS account in any of the authorized banks or post office branch across India. You will need to provide the following documents:

  • A duly filled Form A.
  • Original and self-attested copies of identity proof like PAN card, Passport.
  • Original and self-attested copies of address proof such as Telephone bill, Aadhar card is mandatory.
  • Document for proof of age is required. Passport, Senior Citizen Card, a Birth certificate issued by the Corporation or Registrar of Births and Deaths, Voter ID card, PAN card etc. can serve as valid proofs.
  • 2 Passport size photographs.

Best banks in which you can start your Senior Citizen Saving Scheme

  • Allahabad Bank
  • Andhra bank
  • Bank of Maharashtra
  • Bank of Baroda
  • Bank of India
  • Corporation Bank
  • Canara Bank
  • Central Bank of India
  • IDBI Bank
  • Indian Bank