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• What is Senior Citizen Savings Scheme?

Senior Citizen Saving Scheme (SCSS) is a government-backed savings scheme in India specifically designed for senior citizens above the age of 60. It offers attractive interest rates and tax benefits, making it a popular choice among retirees. In this, we'll cover the key features, eligibility criteria, application process, interest rates, and other important aspects of the Senior Citizen Saving Scheme.

• Features of SCSS:
  • Eligible Age: Individuals who have attained the age of 60 or above can open an SCSS account. Additionally, individuals who have retired on superannuation or under a voluntary or special voluntary retirement scheme at the age of 55 or above but below 60 can also open an account within one month of receiving retirement benefits.
  • Account Type: SCSS accounts can be opened individually or jointly (with a spouse).
  • Deposit Limit: The maximum amount that can be deposited in an SCSS account is ?15 lakh (subject to change as per government notifications).
  • Tenure: The maturity period of an SCSS account is 5 years. The account can be extended once for an additional 3 years.
  • Interest Rate: The interest rate is set by the government and is subject to change. As of September 2021, the interest rate is 7.4% per annum (compounded annually). The interest is payable on a quarterly basis.
  • Premature Withdrawal: Premature withdrawal is allowed after completion of 1 year, subject to certain conditions and applicable penalties.

• Eligibility Criteria:
  • Age: Individuals aged 60 years or above can open an SCSS account. Retirees aged 5560 can also open an account within one month of receiving retirement benefits.
  • Citizenship: Only Indian citizens are eligible for the scheme.
  • Investment Limit: The maximum investment limit is ?15 lakh per individual.
  • No Existing SCSS Account: Individuals can have only one SCSS account.

• Opening an SCSS Account:
  • Visit the nearest post office or authorized bank branch that offers SCSS accounts.
  • Fill out the SCSS application form and submit the required documents.
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