Senior Citizen Savings Scheme (SCSS)

Learn about benefits and features of Senior Citizen Savings Scheme (SCSS).
4 mins
23 March 2024

The Senior Citizen Savings Scheme, commonly known as SCSS, is a special savings plan crafted to cater to the financial needs of individuals aged 60 and above. In this article, we will understand the key aspects of SCSS, including its features, interest rates in 2024, eligibility criteria, rules, and the process of opening an SCSS account.

What is the Senior Citizen Savings Scheme (SCSS)?

The Senior Citizen Savings Scheme (SCSS) is a government-backed financial instrument designed for individuals aged 60 and above. It offers a secure and beneficial way for seniors to invest a lump sum amount for a fixed duration, currently set at 5 years. The scheme provides a fixed interest rate of 8.2% p.a. (as of 01/01/2024) and the interest is paid out quarterly.

The SCSS provides a valuable option for senior citizens seeking guaranteed returns. However, it's wise to consider diversifying your investments for greater flexibility. Fixed deposits (FD) can be a smart complement to the SCSS. FD offer flexible tenures, allowing you to tailor investments to your specific needs.

Features of SCSS




5 years

Interest rate

8.2% p.a. (as of 01/01/2024)

Minimum investment

Rs. 1,000

Maximum investment

Rs. 30,00,000

Tax benefits

Up to Rs. 1.5 lakh under Section 80C


  1. Guaranteed returns: As a government-backed instrument, the SCSS provides assured returns, offering a secure investment option compared to market-linked investments.
  2. Maturity period: The SCSS has a fixed maturity period of 5 years, but individuals have the option to extend it for an additional 3 years by submitting Form B at concerned post office.
  3. Deposit limits: To open an account, a minimum deposit of Rs. 1,000 is necessary, and there is a maximum deposit limit is Rs. 30 lakh.
  4. Prematurely withdrawal: If you prematurely withdraw your amount before completion of 1 year, you won't get any interest, if you withdraw it after 1 year but before 2 years, a 1.5% penalty is charged from the principal amount and if you withdraw after 2 years but before 5 years, a 1% penalty is charged.
  5. Nomination option: Account holders can nominate a beneficiary for the Senior Citizens Saving Scheme, so if the account holder passes away before the account matures, the nominee will receive the due amount.

Benefits of SCSS

  1. Easy registration: You can easily open your account at any authorised bank or post office in India.
  2. Competitive interest rate: SCSS provides an attractive annual interest rate of 8.2% (as of 01/01/2024).

For a higher interest rate on your investment, you can consider Bajaj Finance Fixed Deposit. They offer interest rates up to 8.85% p.a. on their fixed deposits.

Eligibility for SCSS

  • Individuals above 60 years of age are eligible to open an SCSS account.
  • Retired civilian employees above 55 and below 60 years and retired defense employees above 50 and below 60 years can also open accounts within one month of receiving retirement benefits.
  • Joint accounts can be opened with a spouse.

How to complete the Post Office SCSS application form

  1. Enter the branch name of the post office.
  2. If you already have a savings account with the post office, enter the account number.
  3. In the 'To' section, specify the branch address of the Post Office.
  4. Attach a photograph of the accountholder.
  5. Write the account holder's name and select the SCSS option.
  6. Choose the account holder type: minor through guardian, person of unsound mind through guardian, or self.
  7. Select the account type: single, survivor, or all.
  8. Enter the deposit amount in both figures and words.
  9. If depositing by cheque, write the cheque number and date.
  10. Enter the accountholder's personal details.
  11. Tick the boxes at the end of the table for the provided documents.
  12. Fill in the SCSS details and tick the declaration box.
  13. The account holder must sign on both page one and two.
  14. Provide details of the nominee and add the account holder's signature to validate the nominee's information.

Procedure to open SCSS account in a bank

  1. Visit the nearest authorised bank branch and obtain the SCSS application form.
  2. Complete the application form by providing the required information.
  3. Attach the necessary documents.
  4. Submit the filled application form, along with the required documents and the deposit amount.
  5. The bank personnel will process the application and proceed to open the SCSS account.

Documents required to open SCSS account.

  1. 2 passport-size photo
  2. Identity proof (PAN card, Voter ID, Aadhaar card, or passport)
  3. Address proof (Aadhaar card or recent telephone bills)
  4. Proof of age (PAN card, Voter ID, birth certificate, or senior citizen card)

Tax benefits under the SCSS

The principal amount invested in this scheme is eligible for a deduction of up to Rs. 1.5 lakh per year under Section 80C of the Income Tax Act. Additionally, the interest earned on SCSS is taxable based on the individual's tax slab. If the interest amount exceeds Rs. 50,000 in a fiscal year, TDS will be deducted.


Senior Citizen Savings Scheme (SCSS) offers a secure financial option for senior citizen. With a guaranteed returns the scheme ensures competitive interest rates, easy registration, and tax advantages. SCSS caters to the financial needs of senior citizen, promoting financial security.

For additional flexibility and potential for slightly higher returns, you can consider investing fixed deposit, which can provide flexible tenure and competitive interest rates.


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.