Senior Citizens’ Savings Scheme: Who can invest, how to open SCSS account

The Senior Citizens’ Savings Scheme (SCSS) is a retirement savings scheme specifically designed for senior citizens, that is, those who are above the age of 60 years. The rate of interest of the SCSS is decided by the government and it provides regular income to account holders during their retired life.

Where can one open SCSS account
An SCSS account can be opened at an authorised bank. It is a good idea to check with your bank whether it offers this facility. An SCSS account can be opened at a post office too.

Who can open the account

Citizens above the age of 60 years can open an account. Those who have opted for Voluntary Retirement Scheme (VRS) or superannuation can do so between the ages of 55 and 60 years while retired defence personnel can opt for it between 50 and 60 years. Investment in the SCSS account must be made within one month of receiving retirement proceeds.

Features of the SCSS account
The account can be started with a minimum of Rs.1,000 and a maximum of Rs.15 lakh. Interest accrued on the account is paid every quarter. The maturity period of the account is five years, which can be extended by three years.

How to open the account
The applicant needs to fill up the account opening form and attach requisite KYC documents, photographs and a copy of the letter received from the employer with respect to the receipt of retirement funds. You can have more than one SCSS account as long as the total deposit across all SCSS accounts does not exceed Rs.15 lakh.

Points to note

• SCSS account can only be opened by retired individuals and not by HUFs, nonindividuals or even NRIs.
• The SCSS account can be easily transferred across India.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.