1.Eligibility Criteria:

• Open to Indian citizens aged 60 years and above.
• Retired Civilian Employees above 55 years of age and below 60 years of age, subject to condition that investment to be made within 1 month of receipt of retirement benefits.
• Retired Defense Employees above 50 years of age and below 60 years of age, subject to condition that investment to be made within 1 month of receipt of retirement benefits.
• Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) are not eligible.
• Account can be opened as individual capacity or jointly with spouse only.
•  The whole amount of deposit in a joint account shall be attributable to the first account holder only.

2. Interest Rate:

• The interest rate is revised every quarter by the government.
• For Q1 of FY 2024-25 (April-June 2024), the interest rate is 8.2% per annum (subject to change in future).
• Interest is paid quarterly on March 31, June 30, September 30, and December 31.

3. Investment Limit:

• Minimum deposit: ₹1,000.
• Maximum deposit: ₹30 lakh (increased from ₹15 lakh in Budget 2023).
• Investment must be made in multiples of ₹1,000.

4. Tenure & Extension:

• The tenure is 5 years from the date of account opening.
• It can be extended for 3 more years after maturity.
• During extension, the interest rate applicable at the time of extension will apply.

5. Where to Open an SCSS Account?

• Post offices across India.
• Authorized banks such as SBI, ICICI, HDFC, PNB, and others.

6. Tax Benefits on SCSS:

• Investments under SCSS are eligible for a tax deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act.
• However, interest earned is fully taxable and subject to TDS if it exceeds ₹50,000 per year for senior citizens.

7. Premature Withdrawal:

• Account can be prematurely closed any time after date of opening.
• If account closed before 1 year, no interest will be payable and if any interest paid in account shall be recovered from principle.
• If account closed after 1 year but before 2 year from the date of opening, an amount equal to 1.5 % will be deducted from principal amount.
• If account closed after 2 year but before 5 year from the date of opening, an amount equal to 1 % will be deducted from principal amount.
• Extended account can be closed after the expiry of one year from the date of extension of the account without any deduction.

8. Nomination Facility:

• The depositor can nominate one or more persons who will receive the amount in case of the account holder’s death.

9. Transferability:

• The SCSS account can be transferred from one bank/post office to another without any charges.

10. Multiple Accounts:

• A person can open multiple SCSS accounts, but the total deposit across all accounts should not exceed ₹30 lakh.

How to Open an SCSS Account?

Required Documents:

1. Duly filled SCSS application form (available at post offices and banks).
2. Age proof (PAN Card, Aadhaar, Voter ID, Passport, etc.).
3. Address proof (Aadhaar, utility bills, bank passbook, etc.).
4. PAN Card (mandatory).
5. Passport-size photographs.
6. Proof of retirement benefits (if applicable for 55-60 age group).

Steps to Open an SCSS Account:

1. Visit the nearest post office or authorized bank.
2. Collect and fill out the SCSS application form.
3. Submit the required documents and a cheque/demand draft for the deposit amount.
4. Once verified, the SCSS account will be activated, and you will receive a passbook.

Advantages of SCSS:

✅ Government-backed – Low-risk investment.
✅ Higher interest rates than FD, PPF, or savings accounts.
✅ Quarterly interest payouts ensure regular income.
✅ 80C tax benefit on investment.
✅ Easy to operate via post offices and banks.
✅ Premature withdrawal option available.

Disadvantages of SCSS:

❌ Interest is taxable, and TDS applies if interest exceeds ₹50,000 per year.
❌ Investment limit of ₹30 lakh may not be sufficient for some retirees.
❌ Not available for NRIs & HUFs.

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SCSS vs Other Senior Citizen Investment Options:

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