Senior citizens savings scheme offers 8.2% interest rate: Is PAN mandatory to open an SCSS account?

The Senior Citizens Savings Scheme (SCSS) is a small savings schemes for senior citizens in India. SCSS is a government-sponsored retirement benefit initiative. Individuals can appoint nominees during or after opening a SCSS account. An SCSS account can be transferred from a post office to a bank and vice versa.

Senior citizens aged 60 and up are eligible for this scheme. The system also applies to those above the age of 55 but under the age of 60 who have retired under a voluntary or special voluntary scheme, as well as retired personnel from the defence services (excluding civilian defence employees).

The account shall be opened with a minimum deposit of one thousand rupees or any sum in multiple of one thousand rupees not exceeding Rupees Rs 30 Lakhs w.e.f. 01.04.2023.

The depositor may extend the account for a further period of three years after the maturity period of five years.

The deposit made under these rules shall bear interest as directed by Govt of India from time to time quarterly. At present it is 8.20% per annum.

If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.

Yes. The Permanent Account Number or Form 60 as defined in the Income Tax Rules, 1962 is mandatory.

Provided that the individual who has not submitted the Permanent Account Number at the time of opening an account shall submit the same to the Branch within a period of two months from the date of happening of any of the following events, whichever is the earliest, namely: -

The balance at any point of time in the account exceeds Rupees fifty thousand.
The aggregate of all credits in the account in any financial year exceeds Rupees one lakh.
The aggregate of all withdrawals and transfers in a month from the account exceeds Rupees ten thousand.