5 min read
The government of India comes out with various welfare schemes aimed at the elderly citizens in the country from time to time. These schemes are designed to encourage senior citizens to save and invest for the future so as to make it secure for themselves and their loved ones. One such scheme designed for the elderly 60 years old and above is the Senior Citizen Savings Scheme or SCSS for short. The biggest advantage of the post office senior citizen scheme is that it only requires opening an account at the nearest bank or post office, thereby saving senior citizens from unnecessary hassle. Besides, the post office interest rate on the scheme is also quite attractive.
Also Read: SBI Senior Citizen Savings Scheme
As stated above, the benefits under the Senior Citizen Saving Scheme can be availed as simply as by opening an account at a post office near you or at the nearest branch of your preferred bank. The whole idea behind the scheme is to help senior citizens earn a regular and stable income after 60 years of age (post-retirement).
Here are some of the major benefits offered by Senior Citizen Saving Scheme (SCSS) for senior citizens:
Also Read: Post office scheme for boy child
Here is some more information that you need to know while opening an Senior Citizen Saving Scheme (SCSS) account:
Now that we know that the Senior Citizen Saving Scheme (SCSS) comes with a host of benefits, we’re sure you might already be considering investment in the scheme. So let us look at the exact process for opening a bank or post office account under SCSS.
As mentioned above, in order to avail the benefits highlighted in the earlier section, you would need to open an Senior Citizen Saving Scheme (SCSS) account at either a bank or a post office near you.
Step 1: Go to a bank or post office branch near you
Step 2: Take the application form from the bank/post office, duly fill it out with the required details and submit it. You would also be required to submit your KYC documents along with the application form (more on documents required for opening an SCSS account in the later section)
Step 3: Now submit the cheque for the amount that you wish to deposit in your bank account
Step 4: You can also choose to add nominees to your SCSS account, to transfer the benefits of the scheme to your loved ones in your absence
Also Read: Post office gram suraksha scheme calculator
For opening the SCSS account at a post office or bank branch, you would need to submit the following documents along with the application form mentioned in the above section:
Note: All the documents mentioned above must be self-attested by the applicant before submission.
With a one-time fixed sum investment, the plan guarantees a reliable stream of income. However, the investment least is Rs. 1,000 and the maximum is Rs. 15 lakhs.
Also Read: Best investment for senior citizens in india
The current rate of interest on the SCSS stands at 8% per annum. This means that the returns on investment are relatively higher than other savings and FD accounts.
As for the quarter ending March 31, 2023, the new interest rate on post office schemes has been defined as 7.4%. The quarterly interests on this scheme are payable on 31 March, 30 June, 30 September, and 31 December each year.
Here are the interest rates paid on the senior citizen saving scheme in the recent past for your better understanding:
|Time Period for Which Interest Paid
|Rate of Interest Per Annum
|April to June (Q1 for FY 2023)
|July to Sep (Q2 for FY 2023)
|Oct to Dec (Q3 for FY 2023)
|Jan to Mar (Q4 for FY 2024)
A quick look at the table above indicates that the rate of interest on SCSS has been maintained at 7.4% p.a. for every quarter since the FY 2023, continuing through the FY 2023.
The Senior Citizens Savings Scheme is an initiative by the government to ensure financial security to the senior citizens by way of assuring a stable and regular monthly income post retirement. For more details on such senior citizens saving schemes and investment options for the elderly, visit PayBima.
View this post on Instagram
Only senior citizens aged 60 years and above are eligible for opening an SCSS account. The applicant can only make one single deposit under their name. Yes, if the applicant has been drawing a retirement pension or family pension from the Government of India, he/she is mandated to submit a life certificate for opening the SCSS account. The interest earned under the SCSS is liable for tax payment under the specific tax slab that the beneficiary may fall under. In the unfortunate event of the death of the depositor before the scheme matures, the account is closed down and the deposit is refunded along with the interest earned to the nominee or legal heir appointed by the depositor. SCSS interest rate for year 2023 is 8%
FAQs on Senior Citizen Saving Scheme
What are the eligibility conditions for opening of SCSS account?
How many deposits are allowed in SCSS?
Is life certificate required for SCSS?
Is SCSS interest tax-free?
What happens to SCSS if the person dies?
What is the SCSS interest rate 2023?
Only senior citizens aged 60 years and above are eligible for opening an SCSS account.
The applicant can only make one single deposit under their name.
Yes, if the applicant has been drawing a retirement pension or family pension from the Government of India, he/she is mandated to submit a life certificate for opening the SCSS account.
The interest earned under the SCSS is liable for tax payment under the specific tax slab that the beneficiary may fall under.
In the unfortunate event of the death of the depositor before the scheme matures, the account is closed down and the deposit is refunded along with the interest earned to the nominee or legal heir appointed by the depositor.
SCSS interest rate for year 2023 is 8%
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Taxpayers can claim tax deductions under section 80DDB of the Income Tax Act, 1961, on the treatment expenses of certain specified diseases. This deduction can.
In most cases, House Rent Allowance (HRA) is a part of employees' salary and they can claim an exemption for HRA. Hence, if an employee.
You may already know that a rental income or the money earned from renting a property is subject to TDS or tax deducted at the.
Updated on Feb 21, 2024 We know that almost every individual owns a savings bank account. We also know that the interest earned on your.
Every taxpayer in India has to pay taxes on their income. However, the Income Tax Act offers various options to avail of exemptions in different.
Charity or giving donations is a beautiful deed. It not only brings peace of mind and inner happiness but also allows people to earn tax.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue