By Okbima 31 Jan 2024 74

Senior Citizen Saving Scheme (SCSS) - Interest Rate 2024, Tax Benefits, & Eligibility


The Senior Citizen Saving Scheme (SCSS) is a government-backed savings initiative in India designed for individuals aged 60 and above. It offers attractive interest rates and a maturity period of five years, extendable for an additional three years. Let’s talk about its interest rate, features, eligibility, and how you can open saving schemes for senior citizens.


What is the Senior Citizen Saving Scheme?

The Senior Citizen Saving Scheme (SCSS) is a retirement benefits program supported by the government, aimed at senior citizens residing in India. Individuals or couples can invest a lump sum in the scheme and receive regular income, while also enjoying tax benefits. This program is available through Post Office savings or authorized banks, allowing senior citizens to open an SCSS account and take advantage of its benefits.


Key Highlights:


5 years

Interest Rate

8.2% p.a.

Minimum Investment

Rs 1,000

Maximum Investment

Rs 30,00,000

Tax Benefits

Available under Section 80C up to Rs.1.5 lakh

Premature Closure


Nomination Facility



Senior Citizen Saving Scheme Interest Rate

From 1st January 2024 until 31st March 2024, the senior citizen saving scheme interest rate is 8.2% per annum, which will be paid out quarterly.

Historical Interest Rates for the SCSS Scheme

The Senior Citizen Saving Scheme is a popular investment option, and offers attractive interest rates that are higher than regular savings accounts, making it an ideal choice for those looking to earn a steady income during their retirement years. 


Interest Rate (% annually)

October to December (Q3 FY 2023-24)


July to September (Q2 FY 2023-24)


April to June (Q1 FY 2023-24)


January to March (Q4 FY 2022-23)


October to December (Q3 FY 2022-23)


July to September (Q2 FY 2022-23)


April to June (Q1 FY 2022-23)


Jan to Mar (Q4 FY 2021-22)


Oct to Dec (Q3 FY 2021-22)


Jul to Sep (Q2 FY 2021-22)


April to June (Q1 FY 2021-22)


Jan to March 2021 (Q4 FY 2020-21)


Oct to Dec 2020 (Q3 FY 2020-21)


Jul to Sep 2020 (Q2 FY 2020-21)


Apr to Jun 2020 (Q1 FY 2020-21)


Jan to March (Q4 FY 2019-20)


Oct to Dec 2019 (Q3 FY 2019-20)


Jul to Sep 2019 (Q2 FY 2019-20)


Apr to Jun 2019 (Q1 FY 2019-20)


Jan to March 2019 (Q4 FY 2018-19)


Oct to Dec 2018 (Q3 FY 2018-19)


Jul to Sep 2018 (Q2 FY 2018-19)


Apr to Jun 2018 (Q1 FY 2018-19)


Jan to March 2018 (Q4 FY 2017-18)


Oct to Dec 2017 (Q3 FY 2017-18)


Jul to Sep 2017 (Q2 FY 2017-18)


Apr to Jun 2017 (Q1 FY 2017-18)


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Features of Saving Schemes for Senior Citizens (SCSS)

Saving schemes for senior citizens offer several features that cater specifically to the needs of individuals in their golden years. These schemes generally offer attractive interest rates, tax benefits, and flexibility in terms of payout options. 

  1. Scheme Maturity: The scheme has a maturity period of five years. However, participants have the option to extend the maturity duration by three years by applying the required format within one year of the account's maturity. Additionally, the account can be closed without any charges after the account's expiry.

  2. Nominations: Nominations can be added to the policy at the time of opening the account or at any time after it has been opened.

  3. Number of Accounts: Individuals are permitted to operate more than one account either individually or with their spouse in a joint account. However, joint accounts are only allowed with a spouse, and the initial depositor becomes the investor of the joint account.

  4. Minimum and Maximum Amount: Only one deposit is allowed in the account, which must be made in multiples of Rs.1,000. The highest possible deposit amount is Rs.30 lakh. Cash deposits less than Rs.1 lakh are accepted, while amounts exceeding Rs.1 lakh must be paid with a cheque.

  5. Account Transfer: An SCSS account can be transferred from a bank to a post office, and vice versa. The process of opening an SCSS account is simple and convenient

  6. Premature Withdrawal: After one year of opening the account, premature withdrawal is permitted. However, a 1.5% charge and a 1% charge of the total amount deposited will be imposed for premature withdrawals after one year and two years, respectively.

  7. Deposit Limits: The minimum deposit is Rs. 1,000, and the maximum deposit is Rs. 30 Lakh.


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

To open a Senior Citizen Saving Scheme (SCSS) account, individuals can follow a set of guidelines and adhere to specific conditions. Here is an overview of the associated terms:

• Minimum and Maximum Deposit: Deposit a minimum of Rs.1,000 and up to a maximum of Rs.30 lakh in a single installment.

• Timeframe for Deposit: The retirement benefits must be deposited in the SCSS account within a month from the date of receiving the retirement benefits from the employer.

• Ceiling Amount: If the deposit exceeds the ceiling amount of Rs.30 lakh, the excess amount will be refunded to the account holder immediately.

• Interest Payment: Interest on the deposit will be paid once every quarter.

• Mode of Interest Withdrawal: Interest can be withdrawn through auto credit into the savings account held at the same Post Office branch or through ECS (Electronic Clearing Service).

• Premature Closure: The SCSS account can be prematurely closed at any time after the date of opening.

• Extension of Account: The account may be extended for a further period of 3 years from the date of maturity.

• Timeline for Extension: The extension can be done within 1 year from the date of maturity.

• Tax benefits: Individuals can claim tax deductions on investments up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961. However, if the interest amount exceeds Rs.50,000 per annum, Tax Deducted at Source (TDS) will be deducted.


Senior Citizen Saving Scheme (SCSS) vs Fixed Deposit

The Senior Citizen Saving Scheme (SCSS) is a government-backed savings scheme designed specifically for senior citizens in India. With a maximum deposit limit and a fixed tenure of five years, the SCSS Scheme provides a safe and reliable investment option for retirees.




FD (Tax Saver)

Interest Rate

8.2% (January-March 2024)

6.50%-8.75% (For Senior Citizens)

Maturity Period

5 Year

5 Year

Tax Benefits (On Investment)



Tax Benefits (On Returns)



Premature Withdrawal

Allowed (Anytime after opening but with penalty)

Not Allowed

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Which Banks Offer the SCSS Scheme?

Selected banks in the country also offer the Senior Citizen Saving Scheme, in addition to post offices.

Public Sector Banks

  1. Allahabad Bank

  2. Andhra bank

  3. Syndicate Bank

  4. State Bank of India

  5. Bank of Baroda

  6. Bank of Maharashtra

  7. Bank of India

  8. Canara Bank

  9. Corporation Bank

  10. Central Bank of India

  11. Syndicate Bank

  12. Dena Bank

  13. Union Bank of India

  14. UCO Bank

  15. Vijaya Bank

  16. IDBI Bank

  17. Indian Overseas Bank

  18. Indian Bank

  19. Punjab National Bank


Private Sector Bank

  1. ICICI Bank Ltd.


How to Fill Out the Senior Citizen Saving Scheme in the Post Office?

You can get the SCSS application form from any Post Office branch or their official website. To complete the form, follow these steps.

Step 1: Write the name of the Post Office branch in the top left corner of the form

Step 2: If you already have a Post Office savings account, provide the account number.

Step 3: Fill in the address of the Post Office branch in the 'To' field.

Step 4: Copy and paste the account holder's photograph onto the form.

Step 5: Fill in the account holder's name in the first blank field and select 'SCSS' from the drop-down menu.

Step 6: Ignore the 'Additional Facilities Available' section as it only applies to opening savings accounts.

Step 7: Select the type of account holder - self, minor with a guardian, or person of unsound mind with a guardian.

Step 8: Choose the account type - single, either or survivor, or all or survivor.

Step 9: Go to field number 2 and enter the deposit amount in both numerical and written form. If paying by check, note down the check number and date.

Step 10: Provide the account holder's personal information.

Step 11: At the bottom of the form, mark the cells indicating the submission of necessary document proofs.

Step 12: All account holders must sign at the end of Page 1 and Page 2 of the form.

Step 13: Specify the nominee and their contact information for the account. Confirm this information with the signatures of all account holders.

Read More: Post Office Senior Citizen Savings Scheme


How to Open an SCSS Scheme with a Bank?

To open the SCSS account, visit the nearest bank branch that is approved to open the SCSS account and then follow the below steps. 

Step 1: Get the application form by going to the closest branch of the approved banks

Step 2: Fill in the essential information in the required sections.

Step 3: Attach the required proof and documents.

Step 4: Make the deposit payment and get the receipt.

Step 5: Sign and submit the completed application form.

Step 6: The bank staff will process the application and open an SCSS account.


Documents Required for Saving Schemes for Senior Citizens

The documents that are required to open a savings scheme for senior citizens can vary between the banks and post offices.

  1. Please collect the duly filled KYC form from either the post office or bank.

  2. Include photographs of the applicant.

  3. Provide a copy of the Permanent Account Number (PAN).

  4. Submit an address proof.

  5. Submit proof of age.

  6. For retirees, include an employer's certificate.

  7. Include proof of the date of disbursal of the retirement benefits.


Eligibility for SCSS Scheme

If you belong to any of the following categories, you can invest in the Senior Citizen Saving Scheme.

• Indian citizens who are 60 years old or above

• Retirees aged between 55 and 60 years who have chosen to take the Voluntary Retirement Scheme (VRS) or Superannuation. However, they must invest within three months of receiving their retirement benefits.

• Retired defense personnel between 50 and 60 years of age. They must invest within three months of availing of their retirement benefits.

• The updated regulations now allow the spouse of a deceased state/central government employee, who passed away while on duty, to invest the financial assistance amount (such as death compensation) in the SCSS. However, the deceased employee must have been 50 years old or more.

Note: The Senior Citizen Savings Scheme is not open to HUFs and NRIs for investment.

Read More:

  1. Best Monthly Income Scheme in India

  2. Safe Investments with High Returns In India

  3. Post Office FD Interest Rate

  4. Post Office RD Interest Rates

  5. Post Office Monthly Income Scheme



In conclusion, the Senior Citizen Saving Scheme (SCSS) is a beneficial investment option for senior citizens in India. It offers attractive interest rates, safety of principal, and regular income in the form of quarterly interest payments. The scheme has a duration of 5 years, with the option to be extended for an extra 3 years.


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