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Senior Citizen Savings Scheme (SCSS) is a government backed policy designed specifically for senior citizens.
Senior Citizens are individuals who are 60 years of age or above. Since India has a significant population of senior citizens, the Government of India has created a senior citizen specific policy. The SCSS interest rate from July 2019 has been set at 8.6% p.a. This is the highest interest rate among the various small savings schemes.
The Senior Citizen Savings Scheme account can be opened in any bank or post office across India. Some banks also offer this facility online. In addition, a person can hold more than one SCSS account, provided that the combined maximum amount does not exceed Rs. 15 lakhs.
Here are a few features of the Post Office Senior Citizen Saving Account
You can open an SCSS Account in any post office across India. You simply need to visit any of the post offices and submit the account opening application form along with the requested KYC. The interest earned can be easily credited to the investor’s linked savings account at the same post office.
The same process is applicable to open a SCSS account in private/public sector banks.
The penalties on premature exit from SCSS are:
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