Senior Citizen Saving Schemes Rules

Features & Benefits 

• Deposit a minimum amount of Rs.1,000 up to a maximum of Rs.30 lakh in a single instalment to open an SCSS account. The deposited amount should be restricted to the retirement benefits received and must be deposited within a month from the date of receiving such benefits from the employer. 
• The scheme offers a high-interest rate of 8% p.a., which is applicable from 1st January 2023 until 31st March 2023.  
• Interest on the deposit is paid once every quarter, and you can credit it to your savings account through Electronic Clearance Service (ECS). 
• Retirement benefits include gratuity, provident fund dues, commuted pension, savings element of Group Savings Linked Insurance Scheme, retirement-cum-withdrawal benefit under the Employees' Family Pension Scheme, leave encashment, and ex-gratia payments under a voluntary or special voluntary retirement scheme. 
• If the deposit exceeds the maximum limit, the account holder will be refunded the excess amount immediately. 
• SCSS accounts have a tenure of five years. The account can be closed prematurely at any time after opening, and you can extend it for another three years from the date of maturity within one year of maturity. 
• The income tax deduction can be claimed of up to Rs.1,50,000 under Section 80C of the Indian Tax Act, 1961. 
• The account is transferable across India, making it convenient for you to operate it from any part of the country. 

Eligibility Criteria 

1. Senior citizens who are 60 years or above in age are eligible under this scheme. 
2. Individuals in the age range of 55-60 years who have chosen the Voluntary Retirement Scheme (VRS) or Superannuation are eligible to invest in the SCSS scheme. 
3. Defence personnel who have retired and are between 50 years to 60 years of age are eligible under the SCSS. 
4. Hindustan Undivided Family (HUFs) and Non-Resident Indians (NRIs) are not eligible to invest in this scheme. 

Banks that Offer SCSS 

The following banks offer SCSS: 

1. Bank of Maharashtra 

1. Bank of Baroda 
2. Bank of India 
   
3. Canara Bank 
4. Central Bank of India 
5. IDBI Bank 
6. Indian Bank 
7. Indian Overseas Bank 
8. Punjab National Bank 

1. State Bank of India 
2. UCO Bank 
3. Union Bank of India 

1. ICICI Bank 

Note: In addition to these banks, the Post Office also offers SCSS. 

Documents Required 

To open an SCSS account, individuals within the age range of 55-60 years must provide certain documents to prove their eligibility.

These documents include the following: 

1. A document that specifies the date on which the individual received retirement benefits. 

1. An employer certificate that contains details of the retirement under superannuation. 
2. Valid documents for Know Your Customers (KYC), such as PAN card, Aadhaar card, Voter ID card, Passport, etc. 
3. Form A 
4. Two passport-size photographs 

Depending on the situation, individuals may be asked to submit other documents as well. Hence, it is advisable to keep all the relevant retirement-related papers readily available.