Senior Citizen Savings Scheme (SCSS) 2025

• Tax benefits are provided.
• Safe to invest in the scheme.
• You can withdraw from SCSS before maturity, with some conditions.
• SCSS offers high interest rates for senior citizens.

The scheme comes with various security features and provides individuals with a savings option for the long run. The SCSS is available at post offices and certified banks across the country. You can apply for the SCSS through public sector banks,  private banks and post offices. 

Benefits of SCSS

The following are the benefits of SCSS:

1. You can easily open an SCSS account at any post office or authorized bank across the country.
2. The government backs SCSS, making it a trustworthy investment.
3. The scheme offers high rate of interest.

1. You can open an SCSS account for five years and extend it for up to three more years.
2. You can transfer the account anywhere across the country.
3. You can claim an income tax deduction of up to Rs. 1.5 lakh under Section 80C of the Indian Tax Act 1961 for this scheme.

Features of Senior Citizen Saving Scheme

Here are the main features of the Senior Citizens Savings Scheme:

• Maturity of the scheme: The maturity period of the scheme is five years. However, individuals can extend the maturity duration for three years by submitting an application in the required format within one year of maturity of the account. You can close the account without any charges after it expires.
• Nominations: You can add nominations to the policy when you open the account or anytime afterward.
• Number of accounts: Individuals can operate multiple accounts by themselves or open a joint account with their spouse. However, they can open joint accounts only with their spouse, and the initial depositor is the investor of the joint account.
• Minimum and maximum amount: You can make a single deposit in the account in multiples of Rs. 1,000, up to a maximum of Rs. 30 lakh. Pay deposits under Rs. 1 lakh in cash, and deposits over Rs. 1 lakh by cheque. In the case of cheque payments, the date the cheque realises will be the opening date of the account.
• Transfer of an account: You can transfer your SCSS account from a bank to a post office or from a post office to a bank. The process to open an SCSS account is also easy and hassle-free.
• Premature withdrawal: You can make a premature withdrawal after one year of opening the account. We charge 1.5% of the total amount if you withdraw after one year and 1% if you withdraw after two years.

Process to Open a Senior Citizens Savings Scheme

You can open an SCSS account at a bank or post office. Follow the steps below to open your SCSS account:

• Visit the nearest post office or bank branch.
• Submit the application form along with the Know Your Customer (KYC) documents.
• You must provide a cheque for the amount you are depositing.
• You can add nominees to the account.

Eligibility for Senior Citizen Savings Scheme

Below are the eligibility criteria for the SCSS:

• An individual who has attained the age of 60 years or above at the time of opening an SCSS account.
• Individuals who have reached 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.
• 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.

Senior Citizen Saving Scheme Interest Rate

Currently, the SCSS interest rate is 8.20% p.a. The returns of the SCSS are high when compared to savings and Fixed Deposit (FD) accounts. On the first instance, the interest is payable on the deposit date of March 31, September 30, and December 31, thereafter, interest is payable on March 31, June 30, September 30, and December 31.

We pay quarterly interest on the first working day of April, July, October, and January. However, quarterly interest payments are available only at Core Banking enabled post offices.

Opening an SCSS account locks the interest rate for 5 years.

So even if the government changes the rate later, your interest stays the same until maturity.

If you extend the account after 5 years, the new rate at the time of extension will apply for the extended 3-year period.

How Does the Senior Citizen Saving Scheme (SCSS) Work?

Opening an Account

1. Open an SCSS account in a single instalment by contributing between Rs.1,000 to Rs.30 lakh.

Deposit Timeline

1. The amount must be deposited within one month from the date of receiving the retirement benefit from your employer.

What Qualifies as Retirement Benefit?

The retirement benefit includes:

• Retirement or superannuation gratuity
• Leave encashment
• Retirement-cum-withdrawal benefit under the Employees’ Family Pension Scheme Ex-gratia payments under a voluntary or special voluntary retirement scheme
• Provident fund dues
• Commuted value of pension
• Savings element of Group Savings Linked Insurance Scheme payable by the employer on retirement

Excess Deposit?

1. If the deposit exceeds the ceiling amount, the excess will be refunded immediately to the accountholder.

Interest Payout

1. Interest is paid quarterly
2. Can be withdrawn via: ECS (Electronic Clearing Service)Auto credit through post office

Premature Closure

1. The account can be closed at any time after opening.

Extension Option

1. After maturity, the account can be extended for another 3 years
2. Extension must be done within one year from the date of maturity

Documents required to open SCSS account

ven below are the documents that individuals must submit in order to open an SCSS account:

• Two passport-size photographs.
• You must completely fill in and submit Form A.
• You must submit identity proof such as a Passport or PAN Card.
• Individuals must submit proof of address such as Aadhaar Card or telephone bill.
• You must submit a document that confirms your age. Age proof document can be the Permanent Account Number (PAN) Card, Voter ID, Birth Certificate, Senior Citizen Card, or Passport.

You must self-attest all documents submitted to open an account.

Tax benefits under the SCSS

Under Section 80C of the Income Tax Act, 1961, individuals are eligible for tax deductions on investments up to Rs.1.5 lakh. In case the interest generated is more than Rs.10,000 p.a., the tax will be deducted at source.

How to open a SCSS account at Bank?

Step 1: Find the nearest bank branch offering SCSS services.

Step 2: Complete the application form with all required details.

Step 3: Attach supporting documents, like your employer’s letter confirming pension or retirement benefits.

Step 4: Submit the application and deposit to the bank staff.

Step 5: Once your payment and application are processed, your SCSS account will be opened.

How to fill in the Post Office SCSS application form?

Here are the steps to fill the Post Office SCSS application form:

1. Enter the Post Office branch name
2. Enter the account number if you already have the savings account with Post Office
3. Enter the branch address of the Post Office under the ‘To’ section
4. Paste the photograph of the accountholder
5. Enter the name of the accountholder and tick on SCSS option

1. Only if you are applying to open a savings account, select any options provided under the ‘Additional Facilities Available’ section
2. Select accountholder type, such as minor through guardian, person of unsound mind through guardian, or self
3. Select the account type, such as single, survivor, or all
4. Enter deposit amount both in figures and in words
5. Enter the cheque number and date if you deposit via cheque.

1. Enter the accountholder’s personal details
2. Tick the boxes at the end of the table for the documents that you have provided as requested
3. Enter the details of the SCSS and tick the declaration box
4. Accountholder must sign on both page one and two
5. Enter the details of the nominee and provide the accountholder’s signature to validate the details mentioned about the nominee

PAN and Aadhaar Mandatory to Open SCSS Account

1. When opening an SCSS account, if you don’t have an Aadhaar number, you must provide proof of Aadhaar application or enrolment ID.

1. You need to submit your Aadhaar number to the Accounts Office within six months of opening the account.

1. If you didn’t provide your PAN at account opening, you must submit it within two months after any of these happen:
   1. Account balance exceeds ₹50,000.
   2. Withdrawals/transfers in a month exceed ₹10,000.
   3. Total credits in a financial year exceed ₹1 lakh.

1. Failure to submit Aadhaar within six months or PAN within two months will lead to the account becoming inactive until the documents are provided.

Common Mistakes to Avoid in SCSS

• Wrong Age – Must be 60+ (or 55+ with retirement benefits).
• Missing Documents – Provide valid PAN, Aadhaar, proof of age.
• Over Limit – Max ₹30 lakh per person.
• Multiple Accounts – Only one SCSS account allowed.
• No Nominee – Always add a nominee.
• Form Errors – Use correct and complete forms.
• Joint Account Confusion – Spouse can join, but only your age matters.
• Ignoring Lock-in Rules – Premature withdrawals have penalties.

How to Close Your SCSS Account

1. After Maturity (5 Years)

1. Visit your bank or post office.
2. Submit a written request with your passbook and ID.
3. You’ll receive the full amount with interest.
4. No penalty applies.

2. Before Maturity (Premature Closure)

1. Allowed only after 1 year.
2. Submit Form-2, passbook, and ID.

Penalties:

1. 1.5% deduction if closed between 1–2 years.
2. 1% deduction if closed after 2 years.

Note: No interest is paid if closed before 1 year.

List of Banks offering Senior Citizen Saving Scheme

Given below is the list of banks that of the scheme:

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