Senior Citizen Savings Scheme

Senior Citizen Savings Scheme (SCSS), 2004

Government of India launched this product in 2004.

  • Availability:
  • All our branches are authorised to open SCCS accounts.
  • Whcan open:
  • An individual who has attained the age of 60 years & above.
  • On superannuation, retired personnel of 55 years & more.
  • Retired Defence personnel above 50 years.
  • HUF & NRI are not eligible to open these accounts.
  • Documents required to open:
  • Retirement/ Superannuation benefit proof from the employer in case of individual age is less than 60 years.
  • PAN card & Aadhaar card is compulsory.
  • Mode of operation
  • Individual account can be opened.
  • Joint account only with spouse can be opened.
  • A depositor may operate more than one account under these rules subject to condition that deposits in all accounts taken together shall not exceed the maximum specified limit & only one account can be opened in a calendar month.
  • Deposit amount:
  • There should be only one deposit in the account in multiple of one thousand rupees not exceeding Rupees fifteen lakh.
  • Mode of deposit:
  • Deposit can be made through Cash/ Clearing/ Transfer or through any electronic mode
  • By Cash if the amount of deposit is less than Rs.1 lakh.
  • Interest:
  • Rate of interest as applicable on the date of account opening. It is decided by the Government on quarterly basis.
  • Interest is paid quarterly on the last day of each March, June, September & December quarter. The pro rata interest is paid for the short period in a quarter.
  • Passbook:
  • A passbook shall be given after opening of account. Passbook should be presented in bank for updation.
  • Closure & Extension:
  • Expiry of the account is after five years from the date of account opening.
  • Account can be extended for further period of three years within a period of one year from the maturity period of five year.
  • In case of account which is not extended on maturity (within one year from date of maturity), the deposit shall accrue interest applicable at Post Office Saving Bank rate.
  • Premature Closure:
  • In case of premature closure after one year but before the expiry of two years from the date of opening of account, an amount equal to one and half percent of deposit shall be deducted and balance paid to the depositor.
  • In case of premature closure after two years from the date of opening of account, an amount equal to one percent of deposit shall be deducted and balance paid to the depositor.
  • The depositor availing the facility of extension of account may be permitted to withdraw the deposit & close the account at any time after expiry of one year from the date of extension of account without any deduction.
  • Nomination:
  • Nomination can be made for one or more persons.
  • Transferability:
  • A depositor may get his account transferred from one deposit office to another after paying transfer fees of Rs. Five per lakh of deposit if the deposit of above Rs.1 lakh.
  • Tax Benefit:
  • Income tax benefit under section 80(C) for investment.
  • Interest paid is taxable.
  • TDS deductible on interest earned.
  • 15G/15H accepted at Branch level.

For further clarification, please refer to Government notification dated 29th October 2004.