Senior Citizen Savings Scheme or SCSS Scheme is an investment scheme for the senior citizens of India to have a secure source of income after retirement. All eligible candidates can utilise this scheme to get financial benefits post-retirement. They get regular income as interests on the money invested in this scheme and apart from that, it also provides tax benefits.

In this article, we will be discussing SCSS Scheme in detail and we’ll cover its objective, benefits, eligibility, the application process, and other important information related to it. So, anyone willing to know about SCSS Scheme should read the full article carefully.

SCSS Scheme 2024

Anyone above 60 years of age can get his/her SCSS account opened and access all the benefits. The account can be opened in any bank or at the Post Offices under the SCSS Scheme. This post-retirement investment can be made individually as well as jointly. It will act as a continuous source of income and certain tax relaxation is also given. Since the scheme is a government scheme, the investments are secure and the benefits are guaranteed.

Benefits of SCSS Scheme

  • It is a safe and reliable investment scheme as it is backed by the government.
  • The interest rate offered is much higher in comparison to FD or normal Savings Account.
  • Ensures regular income post-retirement.
  • Beneficiaries are provided tax benefits (up to Rs. 1.5 lakh).
  • The interest amount is transferred to the account holders every three months (in four quarters) on the first date of January, April, July and October.
  • The process of getting the account opened under this scheme is simple.

Scheme Details and Working Process

One can open an SCSS account and deposit money into it in a single instalment. Only the amount generated from retirement benefits can be deposited and it should be done within 30 days of receiving retirement benefits. The interests are provided to the account holder quarterly. If the account holder dies before the maturity of the account, the legal nominee has to present an application as per the prescribed format with the Death Certificate attached to it to get the account closed and the maturity proceeds are transferred to him.

Interest Rate:

Currently, the interest rate for this scheme is 7.4% pa. It is for the year 2023-24.

Minimum and Maximum Investment:

The minimum amount that one can invest in SCSS Scheme is Rs. 1000 and the max limit is Rs. 15 lacs.


The tenure for this scheme is 5 years. It can be further extended to 3 years.


One has to pay a penalty of 1.5% (applied on the total Invested amount in the SCSS account) in case of premature withdrawal made before completing 2 years and after 2 years, the penalty rate is 1% for the same.


As already said, its maturity tenure is 5 years. It is not mandatory to extend it but if anyone is willing to extend it for three more years then he has to request for it within 12 months from the date of maturity of the Senior Citizens Savings Scheme account.

SCSS Scheme Eligibility

Here are some of the eligibility criteria that one has to meet before applying under the SCSS Scheme.

  • This scheme is only for Indian citizens. No NRIs/HUFs can take its benefits.
  • Citizens above 60 years of age.
  • Retired Defence Personnel in the age bracket 50-60 years.
  • Those who are between 55-60 years of age and opted for VRS (Voluntary Retirement Scheme)/Superannuation can also apply for it.

How to open your SCSS account?

You can get your account opened for this scheme through any Post Office or authorised Bank.

The account opening is available at all the Post Offices under the Government of India. You can collect the form from there and then after filling it and attaching all the documents needed, can submit it to the Post Office officer.

You can also approach the nearby branch of any authorised bank. The key advantage of getting your SCSS account opened in a bank is that the interest can be transferred to your Savings Bank account of that Bank directly. Also, the account transfer from the post office to the bank or from one bank to another can be done. For doing so, one has to fill the transfer form.

Banks under SCSS Scheme

  • Andhra Bank
  • Allahabad Bank
  • Bank of Baroda
  • Bank of Maharashtra
  • Bank of India
  • Central Bank of India
  • Canara Bank
  • Corporation Bank
  • IDBI Bank
  • ICICI Bank
  • Indian Overseas Bank
  • Indian Bank
  • Punjab National Bank
  • Syndicate Bank
  • State Bank of India
  • Union Bank of India
  • UCO Bank
  • Vijaya Bank

This was all about the Senior Citizen Savings Scheme. It can be a good post-retirement investment option. If you have any queries, you can comment them down below.

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