What is Senior citizen saving scheme

Senior Citizens Saving Scheme (SCSS) is a government-backed savings program in India designed specifically for senior citizens to provide them with a safe and regular source of income post-retirement.

Key Features Of SCSS:

•Eligibility:

° Individuals aged 60 years or above

° Individuals aged 55-60 years who have opted for voluntary retirement or superannuation, subject to certain conditions

° Retired defence personnel (excluding civil defence employees) aged 50 years or more

• Deposit Limits:

° Minimum deposit: Rs. 1,000

° Maximum limit: Rs. 30 lakh

• Tenure :

° 5 years , extendable by 3 more years once on maturity.

• Interest Rate:

° Reviewed quarterly by the government.

° As of Q1 FY 2025-26(April- June 2025), it’s 8.2% per annum, paid quarterly.

• Tax Benefits :

° Eligible for deduction under Section 80C of the Income Tax Act.

° Interest is taxable, and TDS ( Tax deduction at source) applies if interest exceeds Rs. 50,000 in a financial year.

• Where to Open:

° Available at post office and most public/private sector banks.

• Premature Withdrawal:

° Allowed, but with penalties depending on when the withdrawal is made.