Introduced in 2004 by the Govt. of India, SCSS offers a steady stream of income for individuals over 60 years old. As it is a government-backed scheme, there is minimal risk associated with SCSS. Individuals can apply for this scheme in post offices and public and private banks.
Senior Citizens Saving Scheme - Introduction
The Senior Citizens’ Saving Scheme is a retirement benefit program by the Government of India. Individuals over 60 years can opt for the SCSS scheme by making an individual or joint investment. In addition, this scheme provides tax benefits.
In SCSS, the installment amount ranges between ₹1,000 and ₹15 lakhs. This amount is restricted to the retirement benefits. One must deposit it in the Senior Citizen Scheme account within a month from receiving retirement benefits from his/her employer. Moreover, if an individual deposits more than the given amount, the additional funds get refunded to the account holder. One can extend the scheme for 3 more years from its date of maturity.
The Interest Rate is 7.40% per annum (Q2 FY 2022-23). The Tenure is 5 years (with an option to extend it for 3 more years). The Minimum Investment Amount is ₹1,000. The Maximum Investment Amount ₹15,00,000 or the amount received on retirement, whichever is lower.
Eligibility
- Indian citizens above the age of 60 years
- Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation.
- Retired defense personnel above 50 years and below 60 years of age.
(Investment must be made within a month of availing the retirement benefits.)