SCSS (Senior Citizen Savings Scheme) – Single-View Summary
· Nature of Scheme: Central Government backed, secured investment. Objective of fixed income after retirement.
· Current interest rate (2026): 8.2% per annum. (Reviewed quarterly).
· Main Eligibility: Age above 60 years. (Special rules for 55-60 year old retirees and 50+ year old retired defense personnel).
· Investment limit: Minimum ₹1,000 / Maximum ₹30 lakh (per financial year).
· Duration: 5 years. It can then be extended multiple times in blocks of 3 years.
· Interest Payment: Quarterly (every 3 months). Credited on first working day of April, July, October, January.
· Tax Benefit: Tax deduction under Section 80C up to ₹1.5 lakh per annum on investment amount. (under Interest Income Tax).
Necessary documents for account opening
In addition to the documents you listed, here are some additional options and clarifications:
Proof of Identity (any one):
· Aadhaar Card
· PAN Card (Mandatory)
· Passport
· Driver driving license
· Voter Identity Card issued by the Election Commission
Age Proof:
· Above identity documents (with date of birth)
· Birth certificate
· Senior Citizen Card
Address Proof:
· Aadhaar Card
· Phone Bill/Utility Bill
Other:
· Two passport size photographs
· For retirees below 60 years of age: Retirement Certificate and Retirement Payment Record
Calculation of your investment and main rules
Interest Calculation:
· Interest is calculated and credited quarterly.
· Example: Investment of ₹30 lakh, at 8.2% annual interest as:
· Quarterly Interest: Around ₹61,500
· Annual Interest: Around ₹2,46,000
Important rules and warnings:
- Premature Closure Penalty:
· In case of closure within 1 year: Interest accrued will be recovered/waived.
· After 1 year, if closed within 2 years: 1.5% penalty of principal amount.
· After 2 years, if closed within 5 years: 1% penalty of principal amount.
- Tax Details:
· Interest income tax under: Interest income should be included with your other income and taxed as per your tax bracket.
· TDS (Tax Deducted at Source):If the interest income for the year exceeds ₹50,000 (for under 60 years) or ₹1 lakh (for 60+ years), the tax can be deducted at source. TDS can be eliminated by filing Form 15G/15H.
- Other Eligible Groups:
· Retirees aged 55-60 years (VRS/Self Retirement): Should invest within one month of receiving Retirement Money (PF, Gratuity).
· Retired defense personnel above 50 years and below 60 years.
· NRI or HUF are not eligible for this scheme.
Where and how to open an account?
· Locations: Any Post Office or various Authorized Banks (SBI, Canara Bank, HDFC Bank, PNB, etc.).
· Process: Primarily offline (visit in person). Some banks (eg Canara Bank) may allow online account opening through their net banking.
Is SCSS right for you?
SCSS is suitable if you:
· Are above 60 years of age and want a secure and stable source of income.
· If you want to invest the total amount of retirement money (PF, gratuity) in one go.