Senior Citizen Saving Scheme (SCSS) is a post office savings scheme for senior citizens which also saves Income Tax. This scheme offers 8.6% Interest Rate (effective from 1 Oct 2019) and can be determined with the help of senior citizen savings scheme calculator. All the investment in this savings scheme qualifies for the tax benefit under 80C of the IT Act. SCSS Account Maturity Period (Lock-In Period) is only 5 years with maximum limit of Rs. 15 lakh.
SCSS Interest Rate chart shows that this scheme is at with other Post Office Schemes like National Saving Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana (SSY), Recurring Deposit – RD Account, Post Office Savings Account, Time Deposit Account (TD), Monthly Income Scheme (MIS) – check nsc vs ppf vs kvp vs ssy vs rd vs td vs scss vs mis vs post office savings scheme.
NRIs and HUFs are not allowed to make investment in this scheme. People can first check the SCSS Interest Rate Chart, compare it with other schemes. People can Compare All Post Office Schemes 2019 before making investment. Candidates can fill online application to avail benefit of this central government scheme.
Senior Citizen Saving Scheme Interest Rate
Central govt. decides SCSS Interest rate every year which currently stands at 8.6% per annum (from 1 October to 31 December 2019).
Post Office Interest Rates Table 2019
| Post Office Savings Scheme | Interest Rate |
|---|---|
| National Savings Certificate (NSC) | 7.9% compounded p.a but payable at maturity |
| Public Provident Fund (PPF) | 7.9% compounded yearly |
| Kisan Vikas Patra (KVP) | 7.6% compounded yearly |
| Senior Citizen Savings Scheme (SCSS) | 8.6% p.a from 31 March / 30 Sept / 31 December |
| Post Office Recurring Deposit Account (RD) | 7.2% p.a compounded quarterly |
| Time Deposit Account (TD) | 6.9% to 7.7% p.a calculated quarterly |
| Sukanya Samriddhi Yojana (SSY) | 8.4% p.a compounded annually |
| Post Office Monthly Income Scheme (MIS) | 7.6% per year payable monthly |
| Post Office Savings Bank Account | 4% p.a |
Senior Citizen Savings Scheme Interest Rate is equal to Fixed Deposits (FD) in banks. But SCSS 2019 follows an advantage that FD interests are paid yearly while SCSS Interest is paid quarterly. This will comes out to be 9.5% approx. which can be checked through senior citizen saving scheme calculator.
SCCSS 2019 Interest is not Tax Free and has to be paid as per Income Tax Slab Rates. However, people will get tax benefit under 80C of IT Act. TDS would be deducted @10% if interest in FY comes out to be more than Rs. 10,000.
Senior Citizen Saving Scheme Account Opening & Eligibility
Senior Citizens Savings Scheme can be opened in any post office pan India. Candidates can also avail benefits of senior citizen saving scheme in banks. Central govt. has permitted SCSS account opening in various Nationalized banks like SBI, HDFC, Canara bank to ensure higher reach and easy accessibility. For an amount below Rs. 1 lakh, subscribers can open their account in cash but for more than Rs. 1 lakh, subscribers needs to make payment through cheque.
Individuals can fill the application form in Form A along with pay-in-slip in Form D. Any individual who falls in the below mentioned categories can open Senior Citizen Saving Scheme Account:-
- Individual who is 60 years or above in age.
- Any individual between 55 to 60 years of age and has retired on superannuation / Voluntary Retirement Service (VRS). However candidate must open his account within one month of receipt of retirement benefits and maximum investment amount shall not exceed retirement benefits.
- Defense Services Retired Personnel can make investment irrespective of their age subject to certain terms and conditions.
SCSS offers sovereign guarantee, capital protection and quarterly interest payment which acts as source of income.
Senior Citizen Saving Scheme – Nomination Facility
Subscribers are allowed to open single account / joint account with spouse. Spouse may / may not be a senior citizen. Accordingly, age of only 1st application will get considered for Senior Citizen Saving Scheme Account Opening. Subscribers at the time of account opening or after opening the account can nominate any person (select nominee) through filling application in Form C.
In SCSS, any subscriber can operate more than 1 accounts in individual capacity or jointly. The maximum limit even in the joint account still remains Rs. 15 lakh (in multiples of Rs. 1000) only. Subsequently, individuals can open any number of accounts but the total balance (adding balance in all separate accounts) must be lesser than the maximum limit of Rs. 15 Lakh.
Senior Citizens Savings Scheme – Maximum / Minimum amount
There shall only 1 deposit in SCSS account in multiples of Rs. 1000 under SCSS Rules, 2004. Thus minimum amount to deposit is Rs. 1000 while maximum amount is Rs. 15 lakh. There can be only 1 deposit in an account but person can open multiple accounts in Post Office.
However, the maximum amount is restricted to the retirement benefits received by any person or Rs. 15 lakh (whichever is lower).
Compare All Post Office Savings Scheme
Individuals can compare all Post Office Schemes on the basis of Maturity Period (Lock-In Period), Minimum and maximum amount of opening amount and Risk Factors.
NSC vs PPF vs KVP vs ELSS vs SCSS vs RD vs TD vs SSY vs MIS vs PO Savings Account
| Investment | Lock in Period | Minimum / Maximum Investment | Risk |
|---|---|---|---|
| National Saving Certificate (NSC) | 5 Years | Minimum amount is Rs. 100 and no Maximum limit | Risk Free |
| Public Provident Fund (PPF) | 15 Years | Minimum amount is Rs. 500 and Maximum amount is Rs. 1.5 lakh | Risk Free |
| Kisan Vikas Patra (KVP) | 9 Years 10 Months | Minimum amount is Rs. 1000 and no Maximum limit | Risk Free |
| ELSS Funds | 3 Years (12 to 15% expected returns) | Minimum amount is Rs. 1000 and no Maximum limit | Market Related Risks |
| Senior Citizens Savings Scheme (SCSS) | 5 Years | Minimum Deposit is Rs. 1000 and Maximum Rs. 15 lakh | Risk Free |
| Recurring Deposit (RD) | 5 Years | Minimum Rs. 10 per month and Maximum no limit | Risk Free |
| Time Deposit Amount (TD) | 1 to 5 Years | Minimum Rs. 200 and no Maximum Limit | Risk Free |
| Sukanya Samriddhi Yojana (SSY) | Till 21 years | Minimum Rs. 1000 and Maximum Rs. 1.5 lakh | Risk Free |
| Post Office Monthly Income Scheme (MIS) | 5 years | Minimum Rs. 1500 and Maximum Rs. 4.5 lakh | Risk Free |
| Post Office Savings Account | No Lock In Period | Minimum Balance Rs. 50 (non-cheque) and Rs. 500 (cheque) and Maximum Rs. 1 lakh | Risk Free |
Post Office Senior Citizen Saving Scheme 2019 – List of Documents
To make Investment in SCSS, candidates must submit the following documents:-
— Filled in application form which is available at the post office or bank
— Know Your Customer (KYC) form
— Recent Photograph of Applicants
— Permanent Account Number (PAN) Card
— Aadhaar Card
— Address proof
— Age proof
— Date of Disbursal of Retirement Benefits
— For Retired personnels, certificate from employer consisting of information about retirement whether on superannuation or VRS.
Senior Citizen Saving Scheme 2019 – Highlights at a Glance
The important features and highlights of Senior Citizen Savings Scheme are as follows:-
| Interest Rate, Periodicity and Payable Amount | SCSS Account Opening Balance and Minimum & Maximum Maintaining Balance |
|---|---|
| 8.6% per annum on deposits from 31 March / 30 September / 31 December and Interest will get payable on 31 March / 30 June / 30 September / 31 December | One deposit in multiple of Rs. 1000 and maximum Rs. 15 lakh |
| Features Including Tax Rebate | |
| |
For more details, visit the official website – indiapost.gov.in