SENIOR CITIZENS' SAVINGS SCHEME.

For Guaranteed income

Senior Citizens' Savings Scheme (SCSS) offers an interest rate of 8.2 per cent for the April-June quarter of 2023. Here are all you need to know about the Senior Citizens' Savings Scheme

SCSS: Who can invest?

Anyone individual who is above the age of 60 can invest in this scheme. Senior citizens can open an SCSS account at an authorized bank or a post office.

Senior Citizens' Savings Scheme interest rate

The interest rate of the Senior Citizens' Savings Scheme (SCSS) has been hiked from 8 per cent to 8.2 per cent for the April-June quarter of 2023. Do remember once the investment is done the interest rate remains the same throughout the tenure. 

Senior Citizens' Savings Scheme investment limit


Senior citizens can start an SCSS account with a minimum of Rs 1,000. The investment limit of SCSS has been increased from Rs 15 lakh to Rs 30 lakh in Budget 2023.

Senior Citizens' Savings Scheme: Quarterly pay-out

The Senior Citizens' Savings Scheme pays interest quarterly. Guaranteed pay-out at the end of each quarter has made SCSS one of the most popular fixed-income products among senior citizens. 

SCSS: Income Tax Benefit

Senior citizens can claim a deduction of up to Rs 1.5 lakh under section 80C of the Income-tax Act, 1961 for investing in the Senior Citizens' Savings Scheme. 

Senior Citizens' Savings Scheme: Interest is taxable

Do remember interest paid by the scheme is taxable in the hands of the investor based on the income tax slab. In case the interest amount earned on the SCSS is more than Rs 50,000 in a financial year, Tax Deducted at Source (TDS) is applicable to the interest earned. However, senior citizens have the option to claim a deduction of up to Rs 50,000 from the total interest earned on fixed deposits during a financial year under section 80TTB of the Income-tax Act. 

Senior Citizens' Savings Scheme premature withdrawal rule

A premature withdrawal option with penalties is allowed after completion of one year from the date of opening the account. For premature withdrawal after one year, an amount equal to 1.5 percent of the deposit is deducted as a penalty. In case of premature withdrawal on or after the second year, an amount equal to 1 per cent of the deposit is deducted.