SCSS or Senior Citizen Saving Scheme is a Gov. sponsored secure saving scheme exclusively for senior citizens, also known as the Senior Citizen Pension Scheme. The saving scheme is ideal for low-risk appetite persons who are looking for stable returns with capital security. VRS-opted Government employees are also allowed to invest in the SCSS scheme if the individual age is more than 55 years. The pension scheme offers a better interest rate than bank FDs. The SCSS account holder can get a Tax deduction of up to Rs. 1.5 lakh under Section 80C Income Tax Act. NRIs (non-residents of India) are not eligible for this scheme. The SCSS account is allowed to open from any post office or any RBI-recognized bank. As of Nov 2020, the interest rate on SCSS is 7.4% per annum, which is subject to payable every quarter.
Update: On the financial budget 2023, the finance minister announced the increase of investment limit under the SCSS scheme from 15 Lakh to 30 Lakh. Also, the interest rate for the initial quarter of the financial year 2023-24 is increased to 8%.
Update: The Ministry of Finance increased the rate of interest from Q1 of financial year 2023-24 to 8.0%.
SCSS is a one-time deposit scheme. An individual can join this scheme with a minimum deposit amount of Rs. 1000. The upper limit of investment under SCSS is 15 lakh.
The tenure of the Senior Citizen Saving Scheme is five years. The lock-in period of SCSS is also five years. On completion of the initial five years, the account holder can extend the scheme tenure a further three years. A written extension application needs to be submitted to the concerned authority for extension.
Income from the Senior Citizen Savings Scheme is taxable. TDS will be applicable if interest fetches above 50 thousand in a financial year. However, under 80C, a tax deduction up to Rs. 1.5 lakh is eligible during the first year of investment.
The SCSS (Senior Citizen Saving Scheme) Calculator is a tool that lets you calculate the returns of your investment over the Senior Citizen Saving Scheme. The calculator will let you know approximately how much interest you will receive on a monthly, quarterly, or yearly basis.
Using the SCSS calculator is easy. All you need to input is the principal or the deposit amount, tenure (either 5 or 8 years), and rate of interest. After filling in all required inputs, click on the 'Calculate Now' button. Once you submit inputs, the calculation will appear instantly. The result includes interest payable (monthly/ quarterly/ yearly), total interest, and total return.
All residents of India whose age is above 60 years are eligible to open an SCSS account. Government employees who opted for VRS between the age of 55 to 60 years are also allowed to open an SCSS account.
No, NRIs are not eligible to invest in Senior Citizen Saving Scheme.
The interest from SCSS is credited into linked savings accounts quarterly or yearly as per the applicant's choice.
Yes, the SCSS account holder can add or change the nominee anytime.