Senior Citizens Savings Scheme Compare

Additional Useful Information

• Senior Citizens Savings Scheme is available for citizens who have attained an age of 60 years.

• It is also available to those citizens who have attained an age of 55 years and have opted for Voluntary Retirement Schemes or Superannuation of companies they worked for.

• It is also available to those citizens who have retired as Defence Personnel and attained an age of 50 years and have opted for Voluntary Retirement from the defence forces.

• The minimum amount required to invest in the Senior Citizens Savings Scheme is ₹1000.

• The maximum investment limit is ₹30,00,000.

• Interest payments are made on a quarterly basis (4 times a year).

• The maturity period for this scheme is 5 years, which can be extended indefinitely by an additional 3 years after maturity.

• Account holders can nominate a person to receive the funds in the event of their death.

• Interest payments are made quarterly.

Returns *

• Senior Citizen Savings Scheme guarantees returns.

• There is only one component of return in this scheme. This is the quarterly interest payment made.

• Currently, interest at the rate of 8.2% per annum can be earned when investing in this scheme.  

Risk Level

• The Senior Citizen Savings Scheme is a very low-risk investment option as it is backed by the Government of India.

• This means that investments in Senior Citizens Savings scheme are safe and secure since the government can never default.

Liquidity

• The Senior Citizen Savings Scheme (SCSS) is relatively liquid since premature closures are allowed at any time.

Interesting Facts

• Citizens can open a joint account under the scheme with their spouse, provided their spouse is also a senior citizen.

• NRIs are not eligible to invest in the Senior Citizen Savings Scheme. However, if a senior citizen becomes an NRI during the tenure of the scheme, they are allowed to continue the investment till maturity.

• Premature closure of account is available at any time. If there is any closure before 1 year of holding, no interest is payable.

• If there is closure after 1 year of holding, but less than 2 years, a fee of 1.5% of is deducted from the principal amount. If there is closure after 2 years, but less than 5 years, a fee of 1% is deducted from the principal amount.

• Since this investment option is for people above the age of 60, it is a popular retirement planning investment option in India.

Tax Implications

• This scheme is taxable. Taxes are levied based on the interest collected.

• There is no capital gains tax applicable.

• Any Interest that investors receive is added to their taxable income and they need to pay tax according to their income slab.

• Investors investing in the Senior Citizen Savings Scheme (SCSS) can claim tax deduction of up to ₹1,50,000 under Section 80C of the Income Tax Act.

Where To Invest

• https://www.indiapost.gov.in/Financial/Pages/Content/Post-Office-Saving-Schemes.aspx