As the name suggests, the Senior Citizens Savings Scheme is an investment scheme designed exclusively for the elderly. It is an investment scheme initiated by the Government of India to help senior citizens achieve financial stability during their post-retirement years. SCSS guarantees you a safe and regular income and is completely risk-free. It is also eligible for tax benefits under Section 80C of the Income Tax Act of India.
The Senior Citizens Savings Scheme is available to any Indian citizen who is age 60 years or above. Employees who have taken the Voluntary Retirement Scheme (VRS) can also invest in SCSS, but only if the investment is started within a month of the retiree receiving the retirement benefits. Other than that, retired defense personnel are also allowed to invest, and for them, the minimum age limit is of 50 years.
This scheme is not available for NRIs and Hindu Undivided Families (HUFs).
You can open a Senior Citizens Savings Scheme account at any of the authorized banks or at any branch of an Indian Post Office. To open an SCSS account, you will have to complete the following steps-
The banks authorized to handle SCSS accounts are listed as follows-
The minimum investment limit is Rs 1 lakh and the maximum investment limit is Rs 15 lakhs. Joint accounts are allowed if the co-holder is the spouse.
As of 2018, the interest rate for SCSS is 8.3% per annum.
Senior Citizens Savings Scheme is meant to assist senior citizens in their finances so that they can spend their old age in peace and comfort. It is an extremely reliable investment option with benefits like-
For all its benefits, the SCSS is not without its drawbacks. The disadvantages of this scheme are listed as follows-
The tenure of an SCSS account is that of 5 years. However, the rules are pretty flexible. After the completion of the tenure, you can extend it up to 3 years or more. However, you will be allowed only one such extension.
If the account is closed after one year, a deduction charge of 1.5% is made on the deposit. If the account is closed after one year, a deduction charge of 1% is made on the deposit. In case of the death of the subscriber, premature closure of the account is allowed without any charges.
Premature withdrawals are allowed, but only after the completion of one year of the account.
In conclusion, it can be said that the Senior Citizens Savings Scheme is an extremely reliable and secure option. Its safety and stability make it the ideal investment choice for senior citizens. Hopefully, you have found this article to be useful and informative.