Senior Citizens Savings Schemes can be availed by any individual above the age of 60 years. They are effective savings options for the long term and offer attractive features and unmatched security. The Senior Citizens Savings Scheme (SCSS) was launched with the main aim of providing senior citizens of the country a regular income after they attain the age of 60 years old. Some of the main benefits of the scheme are:
- Tax benefits are provided
- Safe to invest in the scheme
- Interest rate has been reduced from 8.6% to 7.4%
- Premature withdrawal is allowed
The scheme comes with various security features and provides individuals a savings option for the long run. The SCSS is available at post offices and certified banks across the country.
Features Of Senior Citizen Saving Scheme
- The account shall be opened with a minimum deposit of one thousand rupees or any sum in multiple of one thousand rupees not exceeding Rupees Fifteen lakhs.
- The depositor may extend the account for a further period of three years after the maturity period of five years.
- The deposit made under these rules shall bear interest as directed by Govt of India from time to time quarterly. At present it is 7.40% per annum with effect from 01.04.2020.
- If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.
- The whole amount of deposit in a joint account shall be attributable to the first account holder only.
- Both the spouses can open single account and joint accounts with each other.
- The depositor may nominate a person or more than one person.
- Nomination made by the depositor can be cancelled or varied.
- The deposit made at the time of opening of the account shall be paid on or after the expiry of five years or after the expiry of eight years where the account was extended from the date of the opening of the account.
- Multiple withdrawals from an account shall not be permitted.
Process to Open an SCSS Account
An SCSS account can be opened at a bank or a post office. The process to open an SCSS account is mentioned below:
- Visit the nearest post office or bank branch.
- Submit the application form along with the KYC documents.
- A cheque for the amount that is being deposited must be provided.
- You can add nominees to the account.
The eligibility criteria for the SCSSare mentioned below:
- An individual who has attained the age of 60 years or above at the time of opening an SCSS account.
- Individuals who have attained the age of 55 years old, but are below the age of 60 years old and have retired on superannuation are eligible to open an SCSS account.
- Individuals who have attained the age of 55 years old and have retired before the implementation of the SCSS rules are eligible under the scheme.
- Under the SCSS, retired Defence Services personnel are eligible irrespective of their age. However, certain other specific conditions must be met by these individuals.
- Non-Resident Indians (NRIs) are not eligible to open an SCSS account.
- Hindu Undivided Families (HUF) are not eligible to open an SCSS account as well.
Documents required to open Senior Citizen Saving Scheme account
Given below are the documents that individuals must submit in order to open an Senior Citizen Saving Scheme account:
- Two passport-size photographs
- Form A must be completely filled and submitted.
- Identity proof such as Passport or Permanent Account Number (PAN) Card must be submitted.
- Individuals must submit proof of address such as Aadhaar Card or telephone bill.
- A document confirming the individual’s age must be submitted. Age proof document can be the PAN Card, Voter ID, Birth Certificate, Senior Citizen Card, or Passport.
All the documents that are submitted to open an account must be self-attested.
List of banks that offer SCSS
Given below is the list of banks that of the scheme:
- ICICI Bank
- Vijaya Bank
- Union Bank of India
- UCO Bank
- Syndicate Bank
- Indian Bank
- Punjab National Bank
- IDBI Bank
- Indian Overseas Bank
- State Bank of India
- Dena Bank
- Central Bank of India
- Canara Bank
- Corporation Bank
- Bank of India
- Bank of Baroda
- Bank of Maharashtra
- Andhra Bank
- Allahabad Bank