Build a retirement nest with Senior Citizens Savings Scheme

The Senior Citizens Savings Scheme (SCSS) is primarily for the golden agers (senior citizens) of India. It aims to offer a regular income flow along with safety and tax benefits for retirees or anyone over 60 years of age.

EldersWealth understands the need of financial independence for senior citizens and that they need an investment options which not only generates a stream of income but also takes off the tax load from senior citizens’ shoulders. Realising this, EldersWealth platform offers investment in Senior Citizens Savings Scheme. If one is not satisfied with the Fixed Deposit Interest Rates for Senior Citizens they can open a Senior Citizen Saving Scheme Account

SCSS is a government-backed long-term saving option which ensures financially stable golden years. Apart from people above 60, those retirees who have taken the Voluntary Retirement Scheme (VRS) or Superannuation and fall in the age bracket 55-60 can open Senior Citizen’s Savings Scheme Account. Even the retired person above 50 years can open a Senior Citizen’s Savings Scheme Account provided he has served as a defense personnel. However, Senior Citizen Investment Scheme can only be availed by Indian resident individuals and not HUFs or NRIs.  

Launched in 2004 by the government of India considering the needs of an average Indian retiree, this Senior Citizen Investment Scheme offers guaranteed interest payment, which is given on a quarterly basis. Senior Citizens Savings Scheme is limited to five years with one-time extension up to three years. In other words, one cannot invest in Senior Citizen Savings options beyond eight years

Benefit over fixed deposits:

Although Fixed Deposit Interest Rates for Senior Citizens offered by bank are slightly higher SCSS promotes long-term saving and its lock-in period ensures that the funds invested in Senior Citizens Savings Scheme are only used until the goal is met i.e. retirement. EldersWealth, however, offers both fixed deposits and SCSS to its customers based on their risk profile, objective and investment horizon. 


What is SCSS?

Senior Citizen Savings Scheme (SCSS) is a government-sponsored savings scheme for elders in India that is designed to build a regular stream of income for senior citizens.

Key Features of The Senior Citizen Savings Scheme

The Senior Citizen Savings option is safe; it is tax-efficient, offers guaranteed returns and even allows pre-mature withdrawals

How much can I invest in Senior Citizen Savings option?

One can either invest up to Rs.15 lakh in Senior Citizen’s Savings Scheme Account ( (individually or jointly) or the amount received as a retirement benefit, whichever is lower.

What is the interest rate on Senior Citizen Investment Scheme?

Interest rate offered by Senior Citizen Savings Scheme Account for 2020-2021 (Q1) is 7.4%. It might be lower than Fixed Deposit Interest Rates for Senior Citizens but it enjoys tax benefits.

What are the taxation benefits for SCSS?

Investment done in Senior Citizen Savings Scheme enjoys the tax benefit under Section 80C of the Income tax act, 1961. Additionally, there’s a TDS applicable on the interest generated above Rs.10,000 p.a.

What are the early withdrawal & account closure implications involved with investment in SCSS?

Premature withdrawals are allowed after a year of opening an Senior Citizen Savings Scheme Account. If you close the account after one year but before the end of 2 years, 1.5% of the deposit is deducted and if you close the account after 2 years, 1% of the deposit shall be deducted as pre-mature withdrawal charges. In an unlikely event of the death of the depositor the account is automatically closed without any charges or penalty.

How can I start investing in SCSS?

You can open Senior Citizen Savings Account Online with the help of online platforms such as EldersWealth. You can also fill the Senior Citizen Savings Scheme Form available in any post office of India or authorised bank. Following is the list of banks where you can get the Senior Citizen Savings Scheme Form to open a Senior Citizen Savings Scheme Account: 

  1. Allahabad Bank
  2. Andhra bank
  3. Bank of Maharashtra
  4. Bank of Baroda
  5. Bank of India
  6. Corporation Bank
  7. Canara Bank
  8. Central Bank of India
  9. Dena Bank
  10. IDBI Bank
  11. Indian Bank
  12. Indian Overseas Bank
  13. Punjab National Bank
  14. State Bank of India
  15. Syndicate Bank
  16. UCO Bank
  17. Union Bank of India
  18. Vijaya Bank
  19. ICICI Bank

Comparison between Fixed deposit investment option and SCSS

Senior Citizen Fixed Deposit Interest Rates are generally higher than Senior Citizen’s Savings Scheme Account but the tax and lock-in period offered by SCSS are helpful in regulating personal finance during the retirement.

What makes SCSS a better investment option for senior citizens?

SCSS provides guaranteed income flow in the golden years of life. An investment of Rs. 15 lakh can generate monthly income of around Rs. 10,625 for a senior citizen who is no longer earning a regular salary.

Why choose EldersWealth to invest in Senior Citizen Savings Scheme?

EldersWealth has the expertise to manage financial decisions and ambition to make senior citizens stand independent during their retirement years thus knowing what suits the customer best.

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