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Know Features & Benefits of Senior Citizens Savings Scheme

Senior Citizens Saving Schemes

As the name rightly suggests Senior Citizens Saving Schemes is the saving instrument designed for the senior citizens or individuals above the age of 60 years. It is a government-backed scheme and aims at providing financial support to the senior citizens by ensuring a regular income to senior citizens.

Eligibility for Senior Citizens Savings Scheme


Eligibility criterion of the Senior Citizens Savings Scheme are as follow:

  1. Individuals should be the resident of India aged 60 years or above
  2. The scheme is also applicable to individuals above 55 years who have retired under applicable superannuation or Voluntary Retirement scheme rules
  3. Individuals who have served defence can also apply for this scheme irrespective of the age, provided they fulfil the terms and conditions prescribed.

The scheme can be availed with a minimum deposit of Rs.


Documents required for the Senior Citizens Savings Scheme

Documents needed for investing in the saving instrument:

  1. Relevant application form duly filled

2.Know Your Customer (KYC) form

3.Photographs of the applicant

4.Permanent Account Number (PAN) 

5.Age proof

  1. Relevant documents by the employer in case of superannuation or VRS.


Features of the senior Citizens Savings Scheme

  1. The tenure of the senior Citizens Savings Scheme is five years which can be further extended by three years.
  2. The rate of interest provide on the scheme lies in the range of 8% to 9%
  3. The frequency of computing the senior citizen saving scheme is quarterly.
  4. Maximum investment under the scheme is Rs. 15 Lakhs and deposits should be in the multiples of Rs. 1000.
  5. Premature closure is applicable only after one year of completion of the tenure. Early closure attracts a penalty.
  6. Nomination facility is available, and an individual can transfer the amount from one deposit office to another.
  7. The facility of opening the senior citizens saving scheme is available at the nationalised banks, private banks and post offices


Benefits Senior Citizens Savings Scheme

  1. Easy to open

 The senior citizen savings scheme can be opened at any nationalised banks, private banks or post offices. The account opening process is easy, quick and hassle-free. It is transferrable across India.


  1. Safety

The government of India backs this saving instrument, so it is quite safe and reliable investment options.


  1. Rate of interest

The rate of interest is high, and senior citizens fetch a decent interest in the range of 8% to 9%.


  1. Tax exemptions

The investment done under this scheme is tax-deductible under Section 80C, of the Income Tax Act, 1961 up to Rs. 1.5 lakh per annum.


5.Flexibility –

 Individuals are provided with an option to invest in multiples of Rs. 1,000 and up to the maximum cap of Rs. 15 lakhs.


Cons of Senior Citizens Savings Schemes 

There are a few cons of this saving instrument as well. They are:

  1. Inflation is not considered

Even though the interest offered in the scheme is reasonable, but in case of high inflation, it may not help the senior citizens to get a modest amount.

2.Short tenor: 

There is no such provision of investing beyond the eight years. The individual will not be able to get the benefit of the scheme after the end of 8 years.

3.Tax deduction: 

There is no such exemption on interest earned. This decreases the interest earned.

4.Low maximum amount

Individuals are not allowed to invest beyond Rs.15 lakh in SCSS and penalty is levied for premature closure.

Read Also: Compare highest Fixed deposit interest rates
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