Individuals and couples aged 50 and above in India are at a greater risk of financial dependence. Therefore, financial security for individuals and couples with no direct income sources becomes crucial.

The Senior Citizen Savings Scheme (SCSS) is a government-backed savings plan for individuals aged 60 and above. The scheme has been launched with the motive of providing senior citizens in India with a regular income after they reach the age of 60.

SCSS is a government-sponsored savings instrument and therefore becomes a safe option for people to choose. Additionally, the risk of capital loss is negligible in the scheme. The Government of India launched this scheme in 2004, aiming to provide financial independence to senior individuals and couples.

The scheme evidently provides individuals choosing to invest in the scheme with a lot of reasons to invest in it. It is one of the most lucrative savings schemes in India, offering comparatively substantial returns to its subscribers.

Senior Citizens Savings Scheme: Details

Eligibility criteria

1. Individual who has attained age of 60 years or above at the time of opening an SCSS account.
2. Individual who have attained the age of 55 years but are below the age of 60 years and have retired on superannuation are eligible to open an SCSS account.
3. Individuals who have attained the age of 55 years, and have retired before the implementation of the SCSS rules, are eligible under the scheme.

Individuals who are not eligible for SCSS scheme-

1. Non-Resident Indians (NRIs) are not eligible to open an SCSS account.
2. Hindu Undivided Families (HUF) are not eligible to open an SCSS account.

Documents required for opening an SCSS account-:

Individual need to produce the following documents to open an account under SCSS scheme –

1. Aadhaar Card
2. Voter ID card
3. PAN card
4. Passport
5. Telephone bill
6. Electricity bill
7. Birth certificate/senior citizen card
8. 2 passport-sized photographs

All of these documents need to be self-attested. Individuals can apply for SCSS through post offices as well as public & private banks.

Procedure for opening Senior Citizen Savings Scheme

The process to open a Senior Citizens Savings Scheme account is very easy for any individual. Step-wise procedure for offline opening has been mentioned below

A: Go to the Bank branch closest to you or the Bank branch where you have a savings account.
B: Request an application form and fill it out with your personal information.
C: Submit the application form, along with any supporting documentation, to the bank’s officials, along with the deposit amount in cash or check.
D: The Bank professionals will process your application and the payment received. The SCSS account will be created once the payment is processed.

Individuals kindly note the below-mentioned list of banks offering the Scheme.

1. Union Bank of India SCSS
2. ICICI Bank SCSS
3. State Bank of India SCSS
4. UCO Bank SCSS
5. IDBI Bank SCSS
6. Indian Bank SCSS
7. Indian Overseas Bank SCSS
8. Punjab National Bank SCSS
9. Canara Bank SCSS
10. Central Bank of India SCSS
11. Bank of Maharashtra SCSS
12. Bank of Baroda SCSS
13. Bank of India SCSS

Post Office SCSS Procedure

The SCSS application form is available at any Post Office branch or on the Post Office’s official website. The procedure for completing the application form is as follows:

1: Fill in the name of the Post Office branch in the top left corner of the form.
2: If you already have a Post Office savings account, enter the account number.
3: Enter the Post Office branch address in the ‘To’ field.
4: Copy and paste the account holder’s photo.
5: Now, fill in the first blank field with the account holder’s name and select the ‘SCSS’ option from the drop-down menu.
6: You do not need to pick any of the choices in the ‘Additional Facilities Available’ section because they are only applicable if you are applying to open a savings account.
7: Select the account holder type, such as self, minor with a guardian, or a person of unsound mind with a guardian.
8: Choose whether the account is single, either or survivor, or all or survivor.
9: Proceed to field number 2, where you must enter the deposit amount in both figures and words. If you’re presenting a check, make a note of the check number and date.
10: Enter the account holder’s personal information.
11: At the bottom of the table, mark the cells where you have submitted the needed document proofs.
12: Signatures of all account holders are required at the end of Page 1 and Page 2 of the form.
13: Mention the nomination for the account, as well as the nominee’s contact information. To confirm this information, including the signatures of all account holders.

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Features of the Senior Citizen Savings Scheme

Here are the characteristics of SCSS discussed below –

1. Quarterly Revision of Interest Rates
   The interest rate under SCSS is revised every quarter. In stagnant economic conditions or no significant change in it, rates might remain the same after revision.
2. Fixed Income
   The interest rate declared during the time of investment remains fixed throughout the maturity tenure.
3. Minimum and Maximum Deposit
   Eligible individuals require making a minimum deposit of Rs. 1,000 to open an account under the Senior Citizen Scheme. At the same time, the deposit quantum is capped at Rs. 30 Lakh or the amount received as a retirement benefit, whichever is lower.
4. Maturity Tenure
   The maturity period for the SCSS scheme is 5 years. It can be extended for another 3 years, effectively bringing up the period to 8 years.
5. Premature Withdrawals
   An individual can withdraw prematurely from their account under SCSS one year after account opening.
6. Account Closure
   If account closure takes place after the completion of 2 years, 1% of the deposited amount is levied as a penalty.
7. Quarterly Disbursal
   Individuals who open an account under the SCSS are eligible to receive quarterly disbursals against their deposited amount.
8. Mode of Deposit
   An individual can choose to deposit their money in cash if the amount is below Rs. 1 Lakh. However, he/she has to pay in cheque if it exceeds Rs. 1 Lakh.
9. Nomination Facility
   Individuals can register a nominee when they are opening their accounts under the SCSS or at a later date.
10. Calculation of Interest under the Senior Citizen Savings Scheme
    Interest is compounded quarterly and disbursed every quarter. The primary components used for its calculation are –

a. The principal or deposit amount
b. Interest rate
c. Maturity period
d. The maturity period is fixed, while the other two components are variable.