Senior Citizen Saving Scheme | SCSS

Senior Citizen Saving Scheme: It is also called Senior Citizen Savings Scheme. Under this scheme, the government has started this scheme to save and invest money for all the senior citizens across the country i.e. people above 60 years of age. The money invested in this scheme matures after 5 years.

This scheme has been started by the central government and in this the deposit amount is increased every 3 months. In this scheme, any person can invest up to a maximum of 15 lakhs.

If you also want to get more important information about What is SCSS (Senior Citizen Saving Scheme) / What is SCSS (Senior Citizen Saving Scheme), then this article is the best option for you.

Name of YojanaSenior Citizen Saving Scheme (SCSS)
DepartmentSenior Citizen Yojana
Interest Rate8%
Investment LimitRs. 15 Lakhs
Official Website

What is scss scheme?

The full name of SCSS is Senior Citizen Saving Scheme, it was started in the year 2023 by our Honorable Prime Minister Shri Narendra Modi ji across the country. This scheme has been started mainly to help the elders of the country.

Individuals above 60 years of age can invest their money in this scheme and the money invested by them will be increased at an interest rate of 8% in 5 years.

With the help of this scheme, any elderly person above 60 years can deposit a minimum investment of ₹ 1000 to a maximum of ₹ 15 lakh in his account.

In this scheme, you can invest your money for 5 years and if you want, after 5 years when this amount matures, it can be extended from back to 3 years.

How much money can be deposited in SCSS?

If you want to invest money in the SCSS scheme for yourself or for someone in your family whose age is more than 60 years, then you should know how much money you can invest in this scheme and for how long. Can invest money for.

Let us tell you that the minimum amount in this scheme has been kept at ₹ 1000 and under this scheme you can invest up to 15 lakhs.

Also, according to the current policy of this scheme, you can keep your money in it for the first 5 years, in 5 years your money will become mature. But if you want, you can invest your money again for 3 years after maturing in these 5 years.

Eligibility to get the benefit of SCSS scheme

If you also want to get the benefit of Senior Citizen Savings Scheme, then some main eligibility has been set by the government, which is mandatory to confirm. This eligibility is as follows.

  • The age of the applicant should be more than 60 years.
  • If the applicant’s age is between 55 to 60 years, then they can open a retired account.
  • It is mandatory for the applicant to be a citizen of India.
  • Both men and women can take advantage of the scheme.

SCSS scheme What is the rule set by the government

If you also want to invest your money through the SCSS scheme, then it is necessary to know the main rules laid down by the government for this. Listed below are the rules set by the government, read them carefully.

  • You must be above 60 years for this scheme.
  • In this scheme, you will be given the opportunity to invest a minimum of ₹ 1000 and a maximum of ₹ 15 lakh.
  • The invested amount will mature after 5 years.
  • Both men and women can apply for this scheme.
  • After 5 years, if you wish, you can invest the money in your account again for 3 years.

Is the rate of interest for SCSS scheme fixed for 5 years

If we talk about the interest rate for SCSS scheme for 5 years, then let us tell you that this interest rate changes every quarter. In this scheme, the interest has been fixed by the government but it keeps on changing after 3 months.

Like in the year 2021-22, the government had kept the interest rate of 7.4% under this scheme, but no, the interest rate has changed to 8.2% in the year 2022-23. The interest rate for the first quarter (April-June) of FY 2023-24 is 8.2%.

In this way, the interest rate keeps changing every 3 months in the SCSS scheme, so how much your money will increase in 5 years depends on your interest rate.

Can I invest up to 30 lakhs in SCSS scheme?

According to the Senior Citizen Savings Scheme, you can invest up to 30 lakhs, may it be your retirement amount or the amount deposited from the sale of a plot.

If any person invests ₹ 30 lakh in his account under SCSS, then he will get an increased amount after 5 years at an interest rate of 8.2% per annum. Let us tell you that after depositing ₹ 30 lakh, the total amount that matures after 5 years will be ₹ 42.30 lakh and according to this, you will get the benefit of ₹ 12.30 every month in the form of interest.

Is scss scheme tax free

As you know, Senior Citizen Saving Scheme is a government scheme which is most reliable and trustworthy. Let us tell you that according to 80C under Senior Citizen Saving Scheme, if you invest money in this scheme then you will not have to pay tax.

On investing in this scheme, the investor is being given tax exemption of up to Rs 1.5 lakh every year. After 5 years when this amount matures and if you want to extend it again for 3 years then you again get the benefit of a tax free project.

What are the disadvantages of SCSS scheme?

As we know that all the things in the world which have some advantages also have some disadvantages. In the same way, till now we have shared many benefits of Senior Citizen Saving Scheme with you, but have told you that there are some drawbacks in this scheme, which are as follows.

  • If you invest in this scheme with your own money, then you have to pay tax if there is a profit of more than 50,000 in 1 year.
  • The maximum amount to invest in this scheme has been fixed, which is Rs 15 lakh.
  • Under this scheme, when you have deposited your money, you will be given money even after 5 years according to the interest rate prevailing at that time. If there is an increase in the interest rate in between, then it will not be extended to your deposited amount at this new interest rate.
  • The age limit for investing in this scheme has been set by the government, so if people who are below 60 years of age cannot apply in it.

Which bank is good for scss

Many people are looking for a good option to invest their money. In today’s time, it has become a common thing to keep money in the bank by making fixed deposits, but if you want to increase your money at a higher rate of interest in a short time, then the SCSS scheme activated by the government is a good option for you. There is an option.

To invest in this scheme, you can either use the post office account or you can also use your bank account. Many banks provide you the facility to invest in this scheme like SBI, Bank of Baroda, Canada Bank, etc. That is, you can invest in this scheme from any of your bank account, there is no prescribed bank for this.

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