SCSS Scheme: A great opportunity for Senior Citizens! What is the Senior Citizens Savings Scheme (SCSS)? Read A To Z information

The Senior Citizens Savings Scheme (SCSS) is proving to be an excellent and secure investment option for senior citizens who wish to stay free from financial worries even after retirement. This is a government-guaranteed scheme that is risk-free and offers tax-saving benefits along with good interest. This scheme is easily available at post offices and select banks across the country.

In this scheme, senior citizens over 60 years or individuals aged 55 to 60 who have taken VRS can invest. A maximum lump sum investment of up to 30 lakh rupees can be made, and the current interest rate is 8.2% per annum, which is received on a quarterly basis. For example, if you invest 15 lakh rupees, you can earn approximately 10,250 rupees in interest per month, while on 30 lakh rupees, you can earn up to 20,500 rupees per month. This amount is locked for 5 years, but it can be extended up to 3 years.

Investments in SCSS are eligible for tax exemption up to 1.5 lakh rupees under Section 80C, resulting in an annual saving of 45,000 rupees for those in the 30% tax slab. If the interest exceeds 50,000 rupees, a 10% TDS is deducted, but senior citizens receive interest up to 50,000 rupees tax-free under Section 80TTB. This provides more liquidity compared to schemes like PPF or NSC, allowing funds to be accessed quickly if needed.

This scheme can be availed individually or by opening a joint account with a spouse, but non-resident Indians are not allowed. Opening an account is easy; fill out the SCSS form at the nearest post office or bank (can be downloaded online from nsiindia.gov.in), submit Aadhaar, PAN, photo, and proof of investment. Payments can be made by check or online transfer, and the account is activated within 7 to 15 days. This scheme is ideal for retirement planning.