Senior citizen savings scheme

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 Why should you invest in SCSS?

Investingin SCSS is a good opportunity for senior citizens above 60 years to make money. This is an effective and long-term saving option which offers security and added features that are usually associated with any government-sponsored savings or investment scheme. These schemes are available through certified banks and post offices across India. 

 Eligibility for SCSS

The following people/groups are eligible to opt for  SCSS:
 1. Senior citizens of India aged 60 years or above.
 2. Retirees who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation in the       age bracket 55-60. Here the investment has to be done within a month of receiving the retirement   benefits.
3. Retired defense personnel with a minimum age of 50 years.
4. HUFs and NRIs are not allowed to invest in this scheme.

Investment Amount

An individual can invest a maximum amount of Rs 15 lakhs, individually or jointly in an SCSS account (in multiples of Rs 1,000). The amount invested in the scheme cannot exceed the money that has been received on retirement. Hence, the individual can invest either Rs 15 lakhs or the amount received as a retirement benefit, whichever is lower. The account can be opened by cash for an amount below Rs 1 lakh and by cheque for an amount exceeding Rs 1 lakh. 

Benefits of investing in SCSS

1. Safe and Reliable: This is an Indian government-sponsored investment scheme and hence is considered to be one the safest and most reliable investment options.
2.Simple and easy process: The process to open an SCSS account is simple and can be opened at any authorized bank or any post office in India. It is also transferable across India.
3.Good returns: At 8.6 % the return rate is very good as compared to a savings or FD account.
4. Nomination: Nomination facility is available at the time of opening an SCSS account by means of submitting an application as part of Form C. This submission is also accompanied by the passbook to the Branch.
5. Tax benefits: Tax deduction of up to Rs 1.5 lakh can be claimed under Section 80C of the Indian Tax Act, 1961.
6. Flexible: The tenure of this investment scheme is flexible with an average tenure of 5 years which can be extended up to 3 additional years.

How to open an SCSS account

An SCSS account can be opened in any of the authorized banks or post office branch across India with following documents:
1. Form A  has to be filled for opening an SCSS Account.
2. Identity proof like PAN card, Passport to be presented.
3. Address proof such as Telephone bill, Aadhar card is mandated.
4. Age Proof Document is required. This could be in the form of a Passport, Senior Citizen Card, a Birth certificate issued by the Corporation or registrar of births and death, Voter ID card, PAN card etc.
5. 2 Passport size photographs.


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