Senior Citizen Savings Scheme Check Full Details of SCSS Yojana

Senior Citizen Savings Scheme

Indian government has released a scheme known as SCSS Yojana. In our society senior citizens are given the self-importance of place.
These respected persons have given a lifetime working, creating life for the ease of the generations that are to follow them. Since the society is ignoring the old person of the society therefore Senior Citizen Savings Scheme is brought up into action by government so that suitable and eligible candidates may get the advantage of this scheme to live the better life by managing their money in such a way that feet may be add to the invested amount effectively.

Senior Citizen Savings Scheme

SCSS is designated for such applicants who have reached to the age of 60 and more. Typical Senior Citizen Saving Scheme (SCSS) account extends up to 5 years and upon maturity can be afterward extended for an additional 3 years. Depositor is allowed to make one deposit into this account, an amount that is a multiple of Rs. 1,000 and not extend beyond Rs.15 lakhs. Candidates are suggested to go through the certified banks as well as the network post offices spread across India to get the benefit the of SCSS Yojana. More details are given below for this scheme.

Latest Interest Rates for Senior Citizen Saving Schemes

Investment Option
Rate of Interest for Quarter 1 : Apr'17 to Jun'17
Senior Citizen Savings Scheme (SCSS)

Benefits of Senior Citizen Saving Schemes:
Easily Available
Fill impel application form at your local bank or post office and you are set.
 This is a Government of India sponsored investment product and comes with all the security and assurance associated with that tag.
Multiple Accounts
 A single applicant can open multiple SCSS accounts, moreover individually or with a joint investor (must be the spouse of the primary investor).
High Returns
 At 8.6% per annum, the returns on your SCSS accounts are very impressive.
Flexible Tenure
 The account has tenure of 5 years but can be extended to add another 3 years. Thus, your senior citizen saving scheme serves as either a medium range investment or a long term plan.
Save Tax
 As per the order of Section 80C, Income Tax Act, 1961, the TDS can be saved.
Choose Your Investment
 Only one investment is permitted per SCSS account. This amount must be a multiple of Rs.1000 and not exceed Rs.15 lakhs. Thus, the SCSS investment is vastly affordable and scalable.
Premature Termination
 In extreme financial duress, your SCSS account can be closed and the money accessed. However, after 1 year, a penalty of 1.5% of the funds in the SCSS account will be deducted while the same is 1% after the completion of 2 years.
Minimum Documentation- KYC documents that prove your age
 Documents that can be submitted to substantiate this are- Passport/ Birth Certificate/ Voter’s ID/ Senior Citizen Card/ PAN, etc.
Eligibility Criteria for Senior Citizens Saving Schemes in India: Applicant must be
Aged 60 years or above.
  • Must be aged 55 years or above, but less than 60 years, provided he/she has retired from his/her employment as per VRS/superannuation and must open said SCSS account within one month of the receipt of retirement benefits.
  • Invested amount must not exceed the amount of the retirement benefits.
  • In case of a joint account, the eligibility is decided per the aforementioned age requirements of the primary depositor.
  • No age restrictions/requirements imposed on the second applicant.

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Senior Citizen Saving Schemes Interest Rates: A lucrative, savings oriented investment option, the senior citizen saving schemes interest rate is set at 8.6% per annum. Instead of parking their savings in the low yield savings bank accounts or risky propositions like mutual funds, the senior citizen saving schemes offer the Indian senior population the option to invest in a safe, high yielding and popular savings portfolio.

Senior Citizen Saving Scheme Rules:
A prepared approach is vital for success and peace of mind. When looking to enrol with the senior citizen saving scheme, ensure that you are well aware of the following conditions-
  • You must be 60 years or above to enrol.
  • Only one deposit is permitted per SCSS account.
  • Deposit must be in multiples of Rs.1,000 with a maximum permissible investment of Rs.15 lakhs.
  • Interest on the money accumulated in the SCSS account is payable on 31st March/30th September/31st December in the first instance.
  • Maximum tenure is 5 years. Tenure can be extended for a further 3 years
  • Account can be easily and quickly transferred from one bank/post office onto another.
  • SCSS provides nomination facility that can be availed at the time of opening the account or after said account has been in operation for a set duration of time.

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Senior Citizen Saving Schemes Calculator:
  • Interest rate on SCSS deposit= 8.6% per annum
  • Interest rate per quarter= 8.6%/4 quarters = 2.175%
  • Interest accumulated for every Rs.100 = Rs .2.175
  • Interest accumulated for every Rs.1 = (2.175/100)= 0.02175

Senior Citizen Saving Schemes Offered by Different Banks: As of 2004, 20 public sector and one private sector bank are authorized to offer the SCSS option. The following is the comprehensive list of said banks:

Public Sector Banks,
  • Allahabad Bank
  • Andhra bank
  • State Bank of India
  • Bank of Maharashtra
  • Bank of Baroda
  • Bank of India
  • Corporation Bank
  • Canara Bank
  • Central Bank of India
  • Dena Bank
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • Vijaya Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Punjab National Bank
  • United Bank of India

Senior Citizen Saving Scheme: As of First October Two Thousands Sixteen, the interest rates for senior citizen saving scheme has been revised to 8.5%. payable from the date of deposit of 31st March/30th Sept/31st December in the first instance thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.
  • Interest rate on SCSS deposit=8.5% per annum
  • Interest rate per quarter= 8.5%/4 = 2.125
  • Interest accumulated for every Rs.100=Rs.2.125
  • Interest accumulated for every Rs.1 = (2.125/100)= 0.02125
  • A depositor for the senior citizen saving scheme is allowed only one deposit of multiples of Rs.1000 not exceeding Rs.15 lakh
  • An account be opened by cash if it below Rs.1 lakh, anything above Rs.1 lakh - the account can be opened only by cheque
  • A premature closure of the savings account is permitted only after a year, whereby the account holder will be charged 1.5% of the savings and 1% after two years.

Reminder: Dear senior citizens stay tuned with this portal to get more such articles.

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