Senior Citizens Savings Scheme (SCSS): Eligibility, Interest Rate, Benefits & More

The senior citizen saving scheme (SCSS) is a scheme for senior citizens who are above 60 years of age. This scheme is available in any government post office.


Any individual who is above 60 years of age and has regular pension or income can invest in the scheme.
Any individual who has taken retirement or Voluntary retirement are eligible for the scheme.
Any retired defense personnel with a minimum age of 50 years.

Senior Citizens Savings Scheme

Interest Rate      

The government of India is offering an interest rate of 8.7% which is one of the highest interest rates provided through a saving scheme. The amount an individual can invest is between 1000 Rupees – 15 lakh rupees maximum. The investment can be done in multiples of 1000 or at a time the lump sum amount of 15 lakh rupees. The tenure is 5 years and can be extended up to 3 years.


  • The scheme is sponsored by Indian government hence it is safe and reliable.
  • The process to open SCSS account is simple and hassle free. It can be opened at any authorized bank or post office.
  • There is a tax deduction up to 1.5 lakh under 80C of the Indian Tax Act.
  • The tenure is flexible and can be extended to additional 3 years.


  • Documents required to open SCSS account are Form A obtained from bank or post office, passport photo, address proof, identity proof and age proof to ensure the scheme is given to legitimate individual.
  • Premature withdrawal is allowed only after 1 year of account opening.
  • There will be premature penalty of 1.5% of the deposit if the individual withdraws before 2nd year and after 1st
  • In case of death of the individual before the tenure is complete, the account is closed and either nominee or legal heir will receive the amount on producing the requirement documents.
  • The depositor can nominate more than one person as nominee by filling an application Form C.
  • Hindu undivided family is not eligible to open an account.
  • The payment for the scheme can be done by cash if the amount is less than 1 lakh rupees. If more than 1 lakh, the individual must provide a cheque or DD.
  • NRIs are not eligible to open an account.