Senior Citizen Saving Scheme FAQs

Below are the FAQs you must go through to know about general questions on Senior Citizen Saving Scheme(SCSS)

Who can open a SCSS account?

  • Attains 60 years of age.
  • Has opted for Voluntary Retirement Scheme or Superannuation, and fall in the 55-60 years age bracket.
  • Is a retired defence personnel, having attained age 50

Can I open a SCSS account jointly?

Yes, a joint account can be opened with one’s spouse only.

Is there a lock-in period in the SCSS scheme?

The tenure of the scheme is 5 years. You can extend the account for a period of 3 years, once.

What is the maximum amount that I can invest in SCSS Scheme?

The investment limit is set as Rs.15 lakh per individual or account. The amount pertaining to any individual or account cannot exceed Rs. 15 lakh irrespective of the type of holding.

For Example:

Mr. A operates an SCSS account alone- Investment limit is Rs. 15 lakh

Mr. A as the first holder operates an SCSS account with his wife as a joint holder- Investment limit is Rs. 15 lakh

Mrs. A as the first holder operates an SCSS account with her husband as a joint holder-investment limit is Rs. 15 lakh.

Mr. A and Mrs. A operate an SCSS account separately. The investment limit is Rs. 15 lakh each. Therefore total deposits can amount to Rs. 30 lakh

An individual can open as many SCSS accounts. However, the total deposits across all accounts cannot exceed Rs. 15 lakh

What is the interest rate receivable in an SCSS account?

The interest rate on SCSS is reviewed by the Central Government on a quarterly basis. The current interest rate effective for the quarter Jan-Mar’2023 is 8.00% per annum.

Does the interest rate change during the tenure?

The investor earns the same rate of interest throughout the tenure, prevailing at the time of entry. The change of interest rate by the government is for new investors. If the investor extends the account, he/she will earn interest based on prevailing rates at the time of initial maturity.

Can I withdraw from my account before maturity in SCSS Scheme?

Yes. Pre-mature withdrawals are allowed subject to penalties.

No interest is payable if withdrawal is made within 1 year. 1.50% of the deposit amount is deducted before completion of 2 years and 1.00% of the deposit amount is deducted after 2 years.

Can I take a loan from my SCSS account?

No. The SCSS account does not provide loan facilities.

What will happen to SCSS investment in case of pre-mature death?

The nominees/legal heirs of the account holder will receive the maturity benefits.

When does the interest get credited in SCSS Scheme?

The interest calculated is credited to the account holder’s account on the 1st day of every quarter beginning (April, July, October, January).

Do I get any tax benefits in SCSS scheme?

Yes. Contribution to SCSS is eligible for deduction under Section 80C for an amount of up to Rs.1.50 lakh. Interest is taxable. TDS on interest will be deducted if the amount exceeds Rs.50,000/-