Published Date - 21 March 2018 05:38:27 Updated Date - 15 April 2018 02:28:35

Post Office Senior Citizen Saving Scheme (SCSS) – Interest Calculator & Details

The calculationof senior citizen saving scheme is very easy. The Senior Citizen Saving Scheme interest calculator is a user friendly tool which allows you to calculate the total interest that is generated on your deposit in the savings scheme. Post retirement, people are looking for investment avenues to park their retirement corpus in. They are hesitant to put their hard-earned money in equities, which carry capital loss risk, or products which come with a long lock-in period and don't offer any income till maturity. 
SCSS Interest Rate chart shows that this scheme is at with other Post Office Schemes like National Saving Certificate (NCS), Public Provident Fund (PPF)Kisan Vikas Patra (KVP)Sukanya Samriddhi Yojana (SSY) and Post Office Savings Account – check nsc vs ppf vs kvp vs ssy vs post office savings scheme vs scss.

NRIs and HUFs are not allowed to make investment in this scheme. People can first check the SCSS Interest Rate Chart, compare it with other schemes. Candidates can fill online application to avail benefit of this central government scheme.

 

Who can invest in SCSS? 
As the name suggests, any individual aged 60 and above can invest in it. Early retirees between 55 and 60 years, who either opted for the voluntary retirement scheme (VRS) or superannuation, can also invest in the scheme, provided the investment is done within a month of receiving retirement benefits. 

Earlier, retired defence personnel were allowed to invest in this scheme irrespective of their age, subject to other conditions. However, on  . October 3, 2017 the government issued a notification stating that the investment age has been fixed at 50 years. 

However, non-resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not allowed to invest SCSS. 

How to invest? 
A senior citizen can invest in this scheme by opening either an individual or a joint (along with the spouse) account with a post office or a scheduled commercial bank. 

How much can one invest? 
An individual, singly or jointly, can open an SCSS account by investing up to Rs 15 lakh (in multiples of Rs 1,000) only. The amount invested in the scheme also cannot exceed the money one receives on retirement. Therefore, one can invest either Rs 15 lakh or the amount received as a retirement benefit, whichever is lower. 

The account can be opened by cash for amounts below Rs 1 lakh and by cheque only for Rs 1 lakh and above, as per the senior citizen scheme rules on the Income Tax website. The investment date in the scheme is taken as the date on which the cheque is realised in the government's account. 


Number of accounts 

There is no limit on the number of accounts that can be opened, but the total amount in all the accounts must not breach the maximum investment limit. 

Senior Citizen Saving Scheme Interest Rate

Central govt. decides SCSS Interest rate every year which currently stands at 8.3% per annum (from 1 January 2018 to 31 March 2018).
Post Office Interest Rates Table 2018

Post Office Savings Scheme

Interest Rate

National Savings Certificate (NSC)

7.6% compounded p.a but payable at maturity

Public Provident Fund (PPF)

7.6% compounded yearly

Kisan Vikas Patra (KVP)

7.3% compounded yearly

Senior Citizen Savings Scheme (SCSS)

8.3% p.a from 31 March / 30 Sept / 31 December

Post Office Recurring Deposit Account (RD)

6.9% p.a compounded quarterly

Term Deposit Account (TD)

6.6% to 7.4% p.a calculated quarterly

Sukanya Samriddhi Yojana (SSY)

8.1% p.a compounded annually

Post Office Monthly Income Scheme (MIS)

7.3% per year payable monthly

Post Office Savings Bank Account

4% p.a

Senior Citizen Savings Scheme Interest Rate is equal to Fixed Deposits (FD) in banks. But SCSS 2018 follows an advantage that FD interests are paid yearly while SCSS Interest is paid quarterly. This will comes out to be 9.5% approx. which can be checked through senior citizen saving scheme calculator.

SCCSS 2018 Interest is not Tax Free and has to be paid as per Income Tax Slab Rates. However, people will get tax benefit under 80C of IT Act. TDS would be deducted @10% if interest in FY comes out to be more than Rs. 10,000.

Benefits of senior citizen saving schemes

As a savings and investment product for the 60+ year olds, the Senior Citizen Saving Scheme is a heaven-sent. Boasting of one of the best interest rates for any government sponsored investment product in India, the senior citizen saving scheme is customized to suit the specific requirements of an investment minded senior citizen. The salient features and benefits of this option are as follows-

  1. Easily Available- Fill up a simple application form at your local bank or post office and you are set.
  2. Reliability- This is a Government of India sponsored investment product and comes with all the security and assurance associated with that tag.
  3. Multiple Accounts- A single applicant can open multiple SCSS accounts, either individually or with a joint investor (must be the spouse of the primary investor).
  4. High Returns- At 8.6% per annum, the returns on your SCSS accounts are very impressive.
  5. Flexible Tenure- The account has a tenure of 5 years but can be stretched to add another 3 years. Thus, your senior citizen saving scheme serves as either a medium range investment or a long term plan.
  6. Save Tax- As per the dictates of Section 80C, Income Tax Act, 1961, the TDS can be saved.
  7. Choose Your Investment- Only one investment is allowed per SCSS account. This amount must be a multiple of Rs.1000 and not exceed Rs.15 lakhs. Thus, the SCSS investment is immensely affordable and scalable.
  8. Premature Termination- In extreme financial duress, your SCSS account can be closed and the money accessed. While this option only applies after the account has existed for a minimum of one year, it still is a ready source of funds that can be called to help at a moment’s notice. However, after 1 year, a penalty of 1.5% of the funds in the SCSS account will be deducted while the same is 1% after the completion of 2 years.
  9. Minimum Documentation- KYC documents that prove your age. The documents that can be submitted to substantiate this are- Passport/ Birth Certificate/ Voter’s ID/ Senior Citizen Card/ PAN, etc.

 

Senior Citizen Saving Scheme Account Opening & Eligibility

Senior Citizens Savings Scheme can be opened in any post office pan India. Candidates can also avail benefits of senior citizen saving scheme in banks. Central govt. has permitted SCSS account opening in various Nationalized banks like SBI, HDFC, Canara bank to ensure higher reach and easy accessibility. For an amount below Rs. 1 lakh, subscribers can open their account in cash but for more than Rs. 1 lakh, subscribers needs to make payment through cheque.

Individuals can fill the application form in Form A along with pay-in-slip in Form D. Any individual who falls in the below mentioned categories can open Senior Citizen Saving Scheme Account:-

  • Individual who is 60 years or above in age.
  • Any individual between 55 to 60 years of age and has retired on superannuation / Voluntary Retirement Service (VRS). However candidate must open his account within one month of receipt of retirement benefits and maximum investment amount shall not exceed retirement benefits.
  • Defense Services Retired Personnel can make investment irrespective of their age subject to certain terms and conditions.
 

SCSS offers sovereign guarantee, capital protection and quarterly interest payment which acts as source of income.

Senior Citizen Saving Scheme – Nomination Facility

Subscribers are allowed to open single account / joint account with spouse. Spouse may / may not be a senior citizen. Accordingly, age of only 1st application will get considered for Senior Citizen Saving Scheme Account Opening. Subscribers at the time of account opening or after opening the account can nominate any person (select nominee) through filling application in Form C.

In SCSS, any subscriber can operate more than 1 accounts in individual capacity or jointly. The maximum limit even in the joint account still remains Rs. 15 lakh (in multiples of Rs. 1000) only. Subsequently, individuals can open any number of accounts but the total balance (adding balance in all separate accounts) must be lesser than the maximum limit of Rs. 15 Lakh.

Senior Citizens Savings Scheme – Maximum / Minimum amount

There shall only 1 deposit in SCSS account in multiples of Rs. 1000 under SCSS Rules, 2004. Thus minimum amount to deposit is Rs. 1000 while maximum amount is Rs. 15 lakh. There can be only 1 deposit in an account but person can open multiple accounts in Post Office.

However, the maximum amount is restricted to the retirement benefits received by any person or Rs. 15 lakh (whichever is lower).

Compare All Post Office Savings Scheme

Individuals can compare all Post Office Schemes on the basis of Maturity Period (Lock-In Period), Minimum and maximum amount of opening amount and Risk Factors.

 

NSC vs PPF vs KVP vs ELSS vs SCSS vs RD vs TD vs SSY vs MIS vs PO Savings Account

Investment

Lock in Period

Minimum / Maximum Investment

Risk

National Saving Certificate (NSC)

5 Years

Minimum amount is Rs. 100 and no Maximum limit

Risk Free

Public Provident Fund (PPF)

15 Years

Minimum amount is Rs. 500 and Maximum amount is Rs. 1.5 lakh

Risk Free

Kisan Vikas Patra (KVP)

9 Years 10 Months

Minimum amount is Rs. 1000 and no Maximum limit

Risk Free

ELSS Funds

3 Years (12 to 15% expected returns)

Minimum amount is Rs. 1000 and no Maximum limit

Market Related Risks

Senior Citizens Savings Scheme (SCSS)

5 Years

Minimum Deposit is Rs. 1000 and Maximum Rs. 15 lakh

Risk Free

Recurring Deposit (RD)

5 Years

Minimum Rs. 10 per month and Maximum no limit

Risk Free

Term Deposit Amount (TD)

1 to 5 Years

Minimum Rs. 200 and no Maximum Limit

Risk Free

Sukanya Samriddhi Yojana (SSY)

Till 21 years

Minimum Rs. 1000 and Maximum Rs. 1.5 lakh

Risk Free

Post Office Monthly Income Scheme (MIS)

5 years

Minimum Rs. 1500 and Maximum Rs. 4.5 lakh

Risk Free

Post Office Savings Account

No Lock In Period

Minimum Balance Rs. 50 (non-cheque) and Rs. 500 (cheque) and Maximum Rs. 1 lakh

Risk Free

       

 

Documents required 
Following is the list of the documents required for investing in the scheme: 
(a) Duly filled application form, available at the post office or bank 
(b) Know Your Customer (KYC) form 
(c) Photographs of the applicant/s 
(d) Permanent Account Number (PAN) 
(e) Aadhaar 
(f) Address proof 
(g) Age proof 
(h) In the case of retirees, a certificate from the employer, stating the retirement was on superannuation or otherwise, retirement benefits, employment held (designation) and the period of employment. 
(i) Proof of date of disbursal of the retirement benefits 

The account opening application form requires details such as PAN, Aadhaar, address proof, age and number of accounts already opened under the scheme and the amount deposited in each account. 

Pan Number is mandatory for opening an SCSS account. If the investor doesn't have PAN at the time of investment, he must apply for the same and mention the application number on the application form. 

Recently, government has made Aadhaar mandatory for every financial transaction. Therefore, no new investment will be accepted without Aadhaar details. If you already have existing investments made under the scheme, you are required to provide your Aadhaar details before March 31, 2018 to avoid the account becoming inoperable. 

Senior Citizen Saving Scheme 2018 – All Features & Heighlights:

The important features and highlights of Senior Citizen Savings Scheme are as follows:-

Interest Rate, Periodicity and Payable Amount

SCSS Account Opening Balance and Minimum & Maximum Maintaining Balance

8.3% per annum on deposits from 31 March / 30 September / 31 December and Interest will get payable on 31 March / 30 June / 30 September / 31 December

One deposit in multiple of Rs. 1000 and maximum Rs. 15 lakh

Features Including Tax Rebate

  • Individuals of more than 60 years of age are eligible to open this account.
  • For retired individuals between 55 to 60 years to age who are retired on superannuation / VRS, account can be opened within 1 month of receiving retirement benefits and maximum amount is the amount of retirement benefits or Rs. 15 Lakh (whichever is lower).
  • Maturity Period is 5 years. Any individual can open more than 1 account and also can operate more than 1 account in individual capacity or jointly. Senior Citizens can open joint account with only spouse only.
  • For account balance below Rs. 1 lakh, account can be opened in Cash. Moreover for account balance of more than Rs. 1 lakh, account can be opened through cheque.
  • People can avail nomination facility at the time of opening of account and also after opening of account.
  • Individual can transfer their account from 1 post office to another.
  • People can open any number of accounts but maximum limit (adding balance) still remains Rs. 15 lakh.
  • Candidates can withdraw Interest through auto credit into savings account / PDCs / Money Order.
  • Quarterly Interest is payable on 1 April, July, October and January.
  • Premature Withdrawal will account to 1.5% deduction on deposit after 1 year and 1% deduction after 2 years.
  • SCSS Account can also get extended for 3 years within 1 year of maturity.
  • If Interest amount is more than Rs. 10,000 then TDS will also get deducted.
  • Investment also qualifies for tax benefit under section 80C of Income Tax, 1961.
 

 

Proof of investment 

The depositor is given a passbook once the account is opened, which includes the date of opening, the account number, the depositor's name, photograph, address, the amount deposited, dates and amount of the quarterly interest payable, maturity date and amount, nomination details. 

Senior Citizen Saving Scheme Rules

A structured approach is crucial for success and peace of mind. When looking to enrol with the senior citizen saving scheme, ensure that you are well aware of the following conditions-

  1. You must be 60 years or above to enrol. In certain conditions, individuals in the age group of 55 years and above can also apply successfully.
  2. Only one deposit is permitted per SCSS account. The deposit must be in multiples of Rs.1,000 with a maximum permissible investment of Rs.15 lakhs.
  3. Interest on the money accumulated in the SCSS account is payable on 31st March/30th September/31st December in the first instance and thereafter interest is payable as of 31st March, 30th June, 30th September and 31st December of each year.
  4. Maximum tenure of this saving scheme is 5 years. However, after maturity, the tenure can be extended for a further 3 years, pending the application for the same in the designated format.
  5. An applicant can operate multiple accounts simultaneously, individually or with a joint account holder who is the spouse. However, the account holder must ensure that all requirements pertaining to the validity and operation of these accounts must be met, including maintaining the minimum balance.
  6. It must be noted that cash is an acceptable medium of investment if the initial amount is less that Rs.1 lakh. If this amount is larger than Rs.1 lakh then a cheque must be used.
  7. Account can be easily and quickly transferred from one bank/post office onto another.
  8. SCSS provides nomination facility that can be availed at the time of opening the account or after said account has been in operation for a set duration of time.
  9. If the depositor chooses to terminate the account prematurely then the following penalty applies- 1.5% of deposit amount after one year and 1% of the deposit amount after two years. Kindly note that premature closure of the senior citizen saving scheme account is only possible after the account has been in operation for a minimum of one year.

10. In case of joint accounts, the primary account holder is deemed the investor while the second stakeholder must be the primary account holder’s spouse.

11. Tax is deducted at source if the accumulated interest on the invested amount exceeds Rs.10,000 per annum.

12. Accumulated interest is deposited onto a designated savings account, maintained at the bank/post office, wherein the senior citizen saving scheme is maintained. These deposits are actioned through the auto credit facility via money orders or PDCs.

13. Investments in the SCSS account saves tax as per the provisions laid out in Section 80C of the Income Tax Act, 1961.

In summary, the standard SCSS is a feature rich offering that helps you save for the medium to long haul while avoiding the common concerns arising from similarly placed products that are actively promoted by non-governmental organizations. It’s your life and future- safety and reliability are definitely top priority.


Senior Citizen Saving Schemes offered by different banks

Alongside post offices, the Senior Citizen Saving Scheme is also offered by select banking organizations across the country. In recent times, banking in India has seen a renaissance of sorts wherein the usage of the latest banking technology, modernization of pioneering public sector banks and the emergence of a number of super competitive private sector banking firms has spiced up the Indian banking scene. Thus, quite naturally, a vast number of people, mainly the urban and semi-urban population, have a 24x7 relationship with their respective banks that include a number of portfolios other than the basic savings account. Into this scene walks the Senior Citizen Saving Scheme that offers a wide range of senior citizen friendly savings/investment options. Its quite easy for said citizens to open a SCSS account with their favorite bank rather than the nearest post office. A mere extension as compared to a whole new relationship.

As of 2004, 24 public sector and one private sector bank are authorized to offer the SCSS option. The following is the comprehensive list of said banks-

Public Sector Banks,

  1. Allahabad Bank
  2. Andhra bank
  3. State Bank of India
  4. State Bank of Mysore
  5. State Bank of Bikaner and Jaipur
  6. State Bank of Patiala
  7. State Bank of Travancore
  8. State Bank of Hyderabad
  9. Bank of Maharashtra

10. Bank of Baroda

11. Bank of India

12. Corporation Bank

13. Canara Bank

14. Central Bank of India

15. Dena Bank

16. Syndicate Bank

17. UCO Bank

18. Union Bank of India

19. Vijaya Bank

20. IDBI Bank

21. Indian Bank

22. Indian Overseas Bank

23. Punjab National Bank

24. United Bank of India

Private Sector Bank- ICICI Bank Ltd.

Other facilities 
Nomination facility is also available for account holders. A depositor can also appoint a minor as his nominee. He just needs to provide the guardian's details, along with the minor's date of birth. 

If the nomination is not made at the time of the opening of the account, the depositor can do so during the scheme tenure by submitting the duly filled nomination form. In the case of joint holding, the nomination form should be signed by all the account holders. 

There is no limit on the number of times an investor can change his nominee. This facility is available free of charge. 

Precaution 
While opening an SCSS account, the depositor must furnish all the required information. If the information furnished by him is false then the account will be closed immediately and the deposited amount will be refunded after the deduction of interest already paid (if any) to him/her. 
           

Reference:-

For more details, visit the official website – indiapost.gov.in

 

 


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