All about Senior Citizen Savings Scheme (SCSS)

Age

Minimum Investment

Maximum Investment

60 or above

Rs. 1000

Rs. 30,00,000

Between 55 years to 60 years and taken voluntary retirement

Rs. 30,00,000 or Retirement benefit received (whichever is lower)

50 years or above

(Retired personnel of Defence Services except Civilian Defence Employees)*

Rs. 30,00,000 or Retirement benefit/Death Compensation (whichever is lower)

50 years or above

(If the government employee died at the age of 50 or above in harness*)

Form No.

Question

Answer

Form-A

(Application)

Who can open account under SCSS?

A Resident Individual Independently or Jointly with Spouse

Lock in Period

Yes, for the period of 5 years (without penalty) however it can be prematurely withdrawn with the penalty of 1% on deposit.

Form-B

(Extension of tenure)

Maximum Tenure of deposit under SCSS

Yes, deposit can be extended for further block of 3 years subject to application of extension is submitted but here it is to be noted that depositor shall earn interest at the rate applicable for the new accounts on the date of maturity.

Gist: Hence, 3 years extension is beneficial in those cases where the interest rate is higher than or equal to the interest rate which was applicable on the 1st day of opening of the SCSS Account.

Can deposit be made annually or multiple times?

Yes, it can be made multiple times subject to the threshold limit of Rs. 30,00,000.

Can we make deposit in cash as well as bank/online transfer?

Yes, but there is a threshold limit of Rs. 1,00,000 if we deposit in cash however there is no limit if deposit is made through bank/online transfer.

Form-C

(Nomination Form)

Whether Nomination is mandatory?

• Yes, otherwise withdrawal from the SCSS is not possible however Nomination can be changed by the depositor.

• Joint Account with spouse: In case of death of a joint holder, the other joint holder is entitled to get the amount receivable. However, spouse will get the power to change the nomination.

Interest on Deposit

Presently Interest Rate is notified @8.20% per annum. It is varied by Government through notification.

(The highest interest rate was 9.30% during the financial year 2012-2013)

Interest is payable on Quarterly Basis

Quarter-wise

Payment credited in account on

1st January to 31st March

1st working day of April

1st April to 30th June

1st working day of July

1st July to 30th September

1st working day of October

1st September to 31st Dec

1st working day of January

Transfer of SCSS Account

Yes, transfer is permissible with some transfer fee.

Whether Premature withdrawal is permissible

Yes, depositor can withdraw the amount after paying penalty of 1% deposit.

Form-D

Issuance of Passbook with the specified details

• Name and Address of Depositor(s)
• Number of Account
• Date of Opening of Account
• Amount Deposited
• Due Dates of Interest Payment
• Maturity Date of Deposit

Form-E

(Withdrawal Form)

Premature Closure of Account

Premature Period

Penalty

0-5 years

1% of Deposit

Closure of Account

After the expiry of 5 years, account can be closed by filing Form-E.

Form-F

Death of Depositor

Single Account: Account shall be closed and amount shall be refunded to the nominee/legal heir.

Joint Account: Account can be continued by the joint holder till maturity or there is an option to close the account.

Income Tax

Whether the interest received on SCSS Account is exempt or taxable

Interest receipt on such deposit is exempt to the extent of Rs. 50,000