Senior Citizen Savings Scheme: Interest Rates In 2022, Benefits, Eligibility, And More
Learn more about the Senior Citizens’ Savings Scheme, its eligibility criteria, benefits, and more.
The Senior Citizens Savings Scheme (SCSS) is a savings instrument backed by the Government of India for Indian residents who are aged over 60 years. In this article, we will learn more about the Senior Citizens’ Savings Scheme, its eligibility criteria, benefits, and more.
What Is The Senior Citizen Savings Scheme?
The Senior Citizen Savings Scheme is a government-backed fixed-income investment scheme for Indian citizens above the age of 60 years. The SCSS scheme aims to help senior citizens by giving them a regular flow of income after retirement. The Senior Citizen Savings Scheme can be availed at any certified bank and post office in India.
Senior Citizen Saving Scheme Latest Interest Rate In 2022
The Senior Citizen Saving Scheme interest rates are reviewed and revised every quarter. For the third quarter of FY 2022-23, the SCSS interest rate is fixed at 7.6% per annum. This is one of the best interest rates offered by a fixed income savings instrument.
The SCSS interest is also calculated and credited to the investors on a quarterly basis.
What Is The Eligibility Criteria For The Senior Citizen Savings Scheme?
You can invest in the Senior Citizen Savings Scheme if you fall under the following criteria:
You are an Indian citizen residing in the country.
You should be aged above 60 years, or you must be a retiree falling in the age bracket of 55-60 years and have opted for a VRS or superannuation. In the latter case, you must invest in the SCSS within one month of availing the retirement benefits.
Defence personnel aged above 50 years and below 60 years of age.
How Much Can One Invest Under The Senior Citizen Savings Scheme?
You can make a lump sum investment in your SCSS account within the following limits:
Minimum SCSS Deposit- ₹1,000 (and in multiples of ₹1,000)
Maximum SCSS Deposit- The amount received on retirement or ₹15 Lakh, whichever is lower
Note: You can make cash deposits in your SCSS account only up to ₹1 Lakh. For deposits exceeding this amount, you will have to use a cheque or demand draft.
What Is The Maturity Period Of The Senior Citizen Savings Scheme?
The maturity period for the Senior Citizen Savings Scheme is 5 years. This period is calculated from the date the SCSS account is opened. However, you have the option of extending the validity of the SCSS account for another 3 years after it has matured. This extension request must be made within 1 year of maturity of the Senior Citizens’ Savings Scheme account.
Benefits Of Senior Citizens’ Savings Scheme
Being a government-backed savings scheme, the SCSS is a safe and reliable investment option for senior citizens that gives guaranteed returns.
High interest rate
The SCSS interest rate is one of the highest rates of interest offered by a fixed income scheme compared to fixed deposits and savings bank accounts.
The SCSS investments up to ₹1.5 Lakh are eligible for tax deductions under Section 80C of the Income Tax Act, 1961.
The process of investing in the Senior Citizens’ Savings Scheme is very simple. You can open your SCSS account at any post office or authorised bank in India.
Regular interest payouts
The SCSS interest amount is credited to the SCSS accountholders every quarter, which ensures a regular interest income post retirement.
Also Read: How Senior Citizens Can Save And Beat Risk Amid Record Low Rates