What is the Senior Citizen Savings Scheme (SCSS)?

• High interest rate: — currently **8.2% per annum**

• Quarterly interest payout: — money comes to your bank account every 3 months

• Government guarantee: — your money is 100% safe

• Tax saving: — deduction under Section 80C of Income Tax Act

Important Rules:

• NRIs (Non-Resident Indians) cannot open: an SCSS account

• HUF (Hindu Undivided Family) is not eligible

• If you took VRS, you must invest within one month of receiving your retirement benefits

• Retired defence personnel must invest within one month of receiving retirement benefits

How Interest is Paid

• Interest is credited directly to your savings account on the 1st of April, July, October, and January

• If you do not withdraw the interest, it will not earn any extra interest — so make sure to use or reinvest it

• The government reviews and announces SCSS interest rates every quarter

Key Points:

• The ₹30 lakh limit applies to all your SCSS accounts combined (individual + joint)

• You can open more than one SCSS account, but total across all accounts cannot exceed ₹30 lakh

• Joint account is allowed only with your spouse: — but the entire amount is treated as yours for the ₹30 lakh limit

For Joint Account (with Spouse):

• Spouse's KYC documents (Aadhaar, PAN, photos) are also required

• Marriage certificate may be asked

Tax Benefits Under Section 80C

• The amount you invest in SCSS is eligible for deduction

• Maximum deduction is ₹1,50,000 per year (combined with other 80C investments like PPF, LIC, ELSS, etc.)

• This can save you up to ₹46,800 in tax (for the 30% tax bracket)

Read the Full Guide

Complete guide to SCSS for senior citizens in India. Learn about eligibility, current interest rate (8.2% p.a.), how to

Read on CitizenNest →