The Senior Citizen Savings Scheme (SCSS) is a government-backed short-term investment plan for individuals aged 60 and above to help them provide steady cash flows post-retirement. Retired military personnel post the age of 55and above can also apply. The government usually announces the interest rates quarterly for SCSS, and small savings schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojna, etc. SCSS investors get guaranteed returns upon the scheme’smaturity at five years. Additionally, the subscribers can claim a one-time tax deduction up to Rs 1.5 lakh in a financial year for their contributions towards the scheme.

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SCSS Interest Rate

The SCSS interest rate for the April-June quarter is 8.2 per cent, the same since April 1, 2023. In the January-March quarter of 2023, the SCSS rate was 8 per cent. The scheme’s minimum deposit is Rs 1,000 and the maximum is Rs 30 lakh. SCSS matures in five years, but it can be extended in blocks of three years indefinitely. The interest is paid quarterly.

The SCSS scheme underwent several changes over the years to make it more attractive to people. For example, the initial investment window for retirees has been extended by three months to ensure they can invest in the scheme three months after retirement. This gives them adequate time to process their retirement corpus with their respective employers before investing in SCSS.

It has also revised the eligibility criteria for the spouses of deceased government employees. The scheme now allows spouses over 50 to invest in the scheme, applicable to both central and state government employees. The revised rules also include a one per cent deduction for premature withdrawals, indefinite account extensions in blocks of three years after maturity, and interest rates on extended accounts, which will apply as per the prevailing rates on the maturity date or the date of the scheme extension. Also, regarding withdrawals, the member can withdraw the entire amount at maturity or the end of the extension period without penalty.

Also Read: ITR Filing For Senior Citizens: How To Calculate Taxable Income And Maximise Deductions

Here’s How To Open An SCSS Account

One can open an SCSS account at the post office or with the bank. The applicant must fill out an SCSS application form, giving proper details such as know-your-customer (KYC) documents, Permanent Account Number (PAN), Aadhaar, and a passport-size photograph. They must also include a nominee or nominees for the account. Then, they must sign the form and copies of the KYC documents before submitting them to the officials for further processing. Once the account is opened, you can deposit an amount in the SCSS account.