Senior Citizen Savings Scheme is an excellent investment for senior citizens as it's safe (guaranteed by Government of India), pays guaranteed quarterly interest income and provides tax exemption under 80C. This calculator computes the interest gained and final maturity amount on your investment.
The government-sponsored Senior Citizen Savings Scheme (SCSS) is a savings tool for those above 60 years of age. It was introduced in 2004 by the Government of India to provide the senior citizens with a secure and steady source of income for their post-retirement period. Being one of the most lucrative savings schemes in India, SCSS gives comparatively substantial returns. Its interest rate for April to June 2020 is set at 7.4%, and it's the highest rate among the various small savings schemes available in India. Although after 5 years from the date of account opening the deposit matures, it can be extended once by an additional 3 years.
Due to being a scheme backed by the Indian government, the risks of capital loss are negligible. SCSS is available at various Public / Private sector banks and in Post Offices, and their terms and conditions are pretty much same, regardless of the bank/post office you've invested through. Fintra's SCSS Calculator will be a very handy tool for calculating the maturity amount and the interest earned through this savings scheme.
To accurately do the calculations with Fintra's easy to use and understand SCSS Calculator input the following primary components:
When all data has been filled in into the SCSS Calculator, click on “Submit”, and instantly results will be displayed beside the calculator.
Following is the list of top public sector banks that offer the facility of opening a Senior Citizen’s Savings Scheme account:
ICICI Bank is one of the leading private sector banks offering this type of account to senior citizens. Please note that the above list is just an illustrative and some additional banks that have not been mentioned above in this list may also offer SCSS.
How can to open a Senior Citizen Savings Schemes Account online?
To open an SCSS account, you have to visit any post office or the bank branch to fill up the related forms for it. The same form has to be attached with KYC documents, age proof, ID proof, Address proof, and a cheque for deposit amount.
Is 80C applicable on Senior Citizen Savings schemes?
Investments made in SCSS do qualify for income tax deduction benefits under Section 80C of Income Tax Act, 1961.
Can you open an SCSS account with SBI Bank?
Yes, any senior citizen can open an SCSS account with banks such as State Bank of India. Do note that some parameters or conditions may apply as per SBI’s guidelines, so confirm before opening an SCSS account with them. For example, as per SBI's rules, you can open two or more SCSS accounts only if the deposits in all accounts taken together do not exceed Rs.15 lakh.
For Senior Citizen Saving Account opening, what is the maximum age limit?
Any individual who is above 60 years of age can open the Senior Citizen Savings Account accompanied by all the required documents.
Can you open joint SCSS account with any family member?
Yes, you can open joint SCSS account by investing maximum Rs.15 lakh (in the multiples of Rs.1000) only with the spouse.
For of joint Senior Citizen Saving Account, what is the eligibility criteria?
The eligibility for opening a joint SCSS account is that the first depositor's age has to be above 60 years. However, for the second applicant, there is no age limit. Moreover, it can be opened only with the spouse.
Will penalty charges be applicable for partial withdrawals?
If partial withdrawals are made by you from your SCSS account after one year of account opening, penalty charges won't apply.