Senior Citizen Saving Scheme in India – SCSS for NRI

The Senior Citizen Savings Scheme (SCSS) in India is a specially designed investment option to provide a stable income source for senior citizens. It offers attractive SCSS interest rates and tax benefits under Section 80C. However, SCSS is not available for Non-Resident Indians (NRIs), as it is exclusively tailored for Indian residents aged 60 years and above.

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Disclaimer: # The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 2 Cr. is for a 30 year old healthy individual investing Rs 18,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: 1,06,79,507 @ CAGR 4%; 2,12,15,817 @ CAGR 8%. All plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

What is the Senior Citizens Savings Scheme (SCSS)?

The Senior Citizens Savings Scheme (SCSS) is a retirement scheme backed by the Indian government. It is designed to provide senior citizens (aged above 60 years) with a safe and reliable source of income after retirement.

Not Available for NRIs and HUFs: This senior citizen deposit scheme is not available to subscribe for NRIs (Non-Resident Indians) and Hindu Undivided Families (HUFs). The scheme is typically available only to resident senior citizens in India.
Investment Options for NRI: NRIs have different investment options such as Unit Linked Insurance Plans (ULIP), Pension Plans, Annuity Plans, NRE/NRO fixed deposits, mutual funds, and specific NRI investment schemes offered by banks and financial institutions.

Features of Senior Citizen Saving Scheme (SCSS)

Feature	Description
Eligibility (Minimum Age)	60 years (55 for retired govt. employees, 50 for ex-servicemen)
Investment Amount	Rs.1,000 to Rs.30 lakh (or retirement benefit amount, whichever is lower)
Interest Rate	8.2% p.a. (reviewed quarterly)
Interest Payout	Quarterly (April 1st, July 1st, Oct 1st, Jan 1st)
Tax Benefits	Deduction up to Rs.1.5 lakh under Section 80C (old tax regime)
Account Type	Individual or Joint with spouse
Maturity Period	5 years (extendable for 3 years)
Number of Accounts Allowed	More than one
Account Transferability	Yes (between banks and post offices)
Nominations	Allowed

Eligibility Criteria of Senior Citizens Saving Scheme (SCSS)

Individuals aged 60 years or above can open an SCSS account.
Early retirees (55 to 60 years old) can open an SCSS account within one month of receiving retirement benefits under superannuation or VRS.
Retired defence personnel (50 to 60 years old) can open an SCSS account within three months of receiving retirement benefits.

NOTE:

SCSS accounts can be opened individually or jointly with a spouse.
The scheme is not available for NRIs or HUFs.

Senior Citizen Savings Account Interest Rates

Senior Citizen Savings Scheme (SCSS) is a popular option in India for senior citizens to park their savings. Here's a quick breakdown of the interest rates:

Current Rate: 8.2% p.a.
Interest Payment: Quarterly
Investment Range: Rs. 1,000 to Rs. 30 lakh.

Benefits of Senior Citizen Saving Scheme (SCSS)

The benefits of the Senior Citizens Savings Scheme (SCSS) are as follows:

Higher Interest Rates: SCSS offers interest rates higher than regular savings accounts, providing senior citizens with better returns on their investments.
Safe and Secure Investment: Backed by the Government of India, SCSS is considered a safe investment option for retirees looking to secure their savings.
Regular Income: Interest is paid out quarterly, providing a steady source of income for retirees.
Tax Benefits: Investments in SCSS qualify for deductions under Section 80C of the Income Tax Act, helping reduce taxable income by up to ₹1.5 lakhs annually.
Flexibility: Allows premature withdrawals with penalties after one year and full withdrawals after five years, providing flexibility in managing financial needs.
Ease of Access: SCSS accounts can be opened at designated banks and post offices across India, ensuring accessibility for senior citizens.
No Market Risk: Unlike investments in stocks or mutual funds, SCSS does not expose investors to market fluctuations, making it a stable option for risk-averse individuals.
Joint Account Option: Allows opening accounts jointly with a spouse, facilitating financial planning and management.

How to Apply for SCSS Scheme?

Eligibility Check: Ensure you are 60 years or older to apply for SCSS. Certain retirees between 55 and 60 years can also apply under specific conditions.
Choose a Bank or Post Office: SCSS is available through designated banks and post offices. Select one where you hold an account or prefer to transact.
Complete Application Form: Obtain the SCSS application form from the chosen bank or post office. Fill it accurately with personal details and nominee information.
Submit Required Documents: Along with the filled application form, submit KYC documents like Aadhaar card, PAN card, address proof, and age proof (if required).
Deposit the Amount: Make the deposit either through cash, cheque, or demand draft in favor of the bank or post office where you are applying. Receive a receipt acknowledging your deposit.

Documents Required to Apply for Senior Citizen Savings Scheme (SCSS)

To apply for the Senior Citizen Savings Scheme (SCSS) in India, you typically need the following documents:

Application form (available at designated banks or post offices)
Age proof
Identity proof (Aadhar card, PAN card, Passport, Any other government-issued ID card).
Address proof (Aadhaar card, Passport, Utility bills, or Bank account statements)
Photographs
KYC documents

FAQs

Can I invest 30 lakhs in SCSS?

Yes, you can invest up to ₹30 lakh in SCSS. This applies if you are opening a single account. For a joint account with your spouse, the maximum limit is also ₹30 lakh.
Which saving scheme is best for senior citizens?
The best saving scheme for senior citizens depends on their financial goals and risk tolerance. Some popular schemes include:
- Annuity Plans
- Guaranteed Return Plans
- Senior Citizen Savings Scheme (SCSS)
- Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- Fixed Deposits (FDs)
- Post Office Monthly Income Scheme (POMIS)
Which bank is best for SCSS in India?

SCSS is a government-backed scheme, so the senior citizens savings account interest rates and terms are the same across all authorized banks and post offices. You can choose a bank or post office based on convenience and your existing banking relationship.
What happens to SCSS after 8 years?
SCSS accounts have an initial tenure of five years. Following are your options after eight years:
- Maturity: If you do not take any action, the account matures after five years. The maturity amount (principal + interest) will be credited to your account.
- Extension: You can extend the account for three more years without any penalty. Interest will continue to be paid during the extension period.
- Premature closure: You can close the account prematurely after one year, but a penalty will be applied to the interest earned.

Past 10 Year annualised returns as on 01-12-2024

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).