SCSS: Benefits, Tax, Interest, Withdrawal, Maturity

Senior Citizen Savings Scheme (SCSS)

SCSS is a medium term investment option ONLY for senior citizens launched in the year 2004 offering regular income.

Benefits and interest rate

  • Depositors receive interest every quarter
  • Very high rate of interest. For the year 2014-2015, 9.20% simple interest is fixed by the Reserve Bank of India.
  • Guaranteed returns

Investment limit

Minimum amount required to invest is Rs. 1000 whereas maximum investment limit is Rs.15 Lakh

When is the interest paid?

Interest is paid in every quarter on 31st March, 30th June, 30th September and 31st December

I want to open multiple accounts, is it possible?

Yes. But provided your total amount invested is within the limits as mentioned above.


  • Indian citizens with age greater than or equal to 60 years
  • People who have taken voluntary retirement are also eligible provided enrolment is done in the first 3 months after the retiring. Also see voluntary provident fund benefits
  • There is no age restriction for defence personnel

Can account be single or jointly?

What is the maturity period?
It is 5 years.

Can I stay invested even after maturity?
Yes, extension for 3 years is permitted. And for that you need to fill form-B

What are the income tax benefits of Senior Citizen Savings Scheme?


Interest earned is taxable. However under Section 80C of Indian Income tax act, deposited amount can be rebated.

How to open account:

Senior citizens should visit nearest Indian government post office or any state bank of India branch to open the account. After completing all the formalities, pass-book would be issued.

Is there a premature Withdrawal under SCSS?
No. Withdrawing money prematurely is not possible.

What if I want to close the account prematurely and any penalty?
Account closure is possible only after completing 1 year (but before start of 2nd year)/after 2 year but before scheme matures/and after 3 years. Interest deducted is 1.5%, 1% and 0% respectively.

Can you transfer the account?

In case account holder relocates to another location, he/she can transfer the SCSS account to the desired office.

What is the fee for transferring the account?
For every 1 Lac, there is a small fee of Rs.5

Is nomination facility possible?
Yes. Depositors in Senior citizen savings scheme are eligible to nominee anyone while opening the account. For that, you need to fill and submit nomination

Is it allowed to change nominee?
Yes. It is allowed.

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