Senior Citizen Savings Scheme: You can open an account before reaching 60

The Senior Citizen Saving Scheme (SCSS) is one of the most popular investment instruments among senior citizens. It is a government-backed program that provides a zero-risk, steady stream of income along with tax benefits. Now SCSS is offering 7.4% annual interest rate payable quarterly on March 31, June 30, September 30 and December 31. It is available across all banks and post offices across India.

Deposit amount

Account can be opened as an individual capacity or jointly with spouse only. Minimum amount for opening of a Senior Citizen Saving Scheme (SCSS) account is Rs 1,000 and in multiples of 1,000. The maximum limit of investment is Rs 15 lakh individually or jointly.

Tenure and extension

The tenure of the SCSS is five years but the account can be extended for further three years. Account can be extended within one year of maturity.

Premature closure

The accounts can be prematurely closed any time after the date of opening. If the account closes before one year, no interest will be payable and if any interest paid in account shall be recovered from the principal.

If the account closes after one year but before two years from the date of opening, an amount equal to 1.5% will be deducted from the principal amount. In the case of an account closed after two years but before five years, an amount equal to 1% will be deducted from the principal amount.

Eligibility criteria

Apart from senior citizens age of 60 years, retired employees above 55 years of age and below 60 years of age can also apply provided the investment is made within 1 month of receipt of retirement benefits. For defence employees, the age limit is above 50 years of age.