- A person who has reached the age of 60 on the date of opening the account.
- A person aged 55 to 60, who has retired in superannuation or otherwise on the date of opening the account, provided that the SCSS account is opened within one month of receipt of retirement benefits.
- Retired defense service personnel (except civil defense employees) who have reached the age of 50.
SCSS accounts can be opened jointly with the spouse. The age of the first account holder is taken into account for the age limit. There is no age limit for the second applicant. The amount credited to the SCSS account is attributable only to the first account holder. Both spouses (if eligible according to age criteria) can hold single and joint accounts with each other with a maximum deposit of up to Rs 15 lakh in each account.
Investment process in the Seniors Savings Plan
Opening an SCSS account
The Post offers numerous deposit systems for potential investors. These are also known as small savings plans. One such popular scheme is the SCSS or Senior Citizen Savings Scheme. As the name suggests, senior citizens i.e. people aged 60 and over can invest in SCSS to earn regular interest income.
A government program, the SCSS helps seniors accumulate funds during or for retirement and earn quarterly interest on the deposit. This account can be opened at any bank or post office, alone or together with your spouse. Here are the important points you should know when opening a SCSS account.
The account can be opened by completing the account opening form and depositing a minimum of Rs 1,000 or any sum in multiples of Rs 1,000, not exceeding Rs 15 lakh.
- 1.5% of the deposit amount is deducted if the withdrawal occurs before the end of the 2 years from the date of opening the account.
- 1% of the deposit is deducted if the withdrawal occurs between 2 to 5 years.
Points to note
- You can have more than one account under the plan. However, the sum of deposits to all SCSS accounts must not exceed the maximum threshold.
- Investments made in the SCSS account are allowed as a deduction under article 80C.
(The content on this page is courtesy of the Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava, and Labdhi Mehta.)