(SCSS) Senior Citizens Savings Scheme: Tax Benefit & Features

Senior Citizen Savings Scheme

A savings program designed for older citizens over 60s in India is usually called the Senior Citizens Savings Scheme (SCSS). It offers a steady income stream with the highest level of safety and tax advantages. SCSS offers a sovereign guarantee since it is backed by the government. Investing in this plan is a smart financial move for anybody over the age of 60.

In this post, we will go through SCSS in detail.


The SCSS’s interest rate is set by the government, and account holders get a consistent income during their retirement years. It is one of the wealthiest savings plans in India and provides users with large returns.

Under a government-backed savings program, senior persons in India will have access to interest rates as high as 8.0% per year during the fourth quarter of FY 2022–2023 This is among the greatest interest rates that a fixed-income modest savings plan has to offer. SCSS is qualified for an annual tax deduction of up to Rs. 1.5 lakh.

How it works?

An investing mechanism for older persons is the Senior Citizen Saving Scheme (SCSS). Starting an account requires a minimum deposit of Rs 1,000 and a maximum commitment of Rs 15 lakh. It gives elderly individuals a platform to invest in highly profitable, secure, and well-liked savings instruments. With the current interest rate of 8.7%, you may open an account with the Senior Citizen Savings Scheme (SCSS) at the post offices and a few banks. It gives elderly individuals a platform to invest in highly profitable, secure, and well-liked savings instruments.

After one year, 1.5 percent of the invested amount; after two years, 1 percent of the invested amount. You may quickly make use of the nomination option once you create an account with SCSS or once your account has been active for a specified period of time.

Senior Citizens’ Savings Scheme
Interest Rate Since Inception

02-08-2004 to 31-03-20129.0
01-04-2012 to 31-03-20139.30
01-04-2013 to 31-03-20159.20
01-04-2015 31-03-20169.30
1.4.2016 to 30.9.20168.60
1.10.2016 to 31.3.20178.50
1.4.2017 to 30.6.20178.40
1.7.2017 to 30.9.20188.30
1.10.2018 to 30.6.20198.70
1.07.2019 to 31.03.20208.60
1.4.2020 to 30.09.20227.40
1.10.2022 to 31.12.20227.60
1.01.2023 to 31.03.20238.00
(Source: www.nsiindia.gov.in)

Features & Benefits

  • The Senior Citizen Savings Scheme (SCSS) is offering an interest rate for the fourth quarter of FY 2022–2023 of 8.0 percent annually after the government scheme. For as little as Rs 1,000, you may open a SCSS account. Your maximum investment is Rs. 15 lakh.
  • Since SCSS is an investment programme authorised by the Indian government, it is regarded as secure and trustworthy.
  • Using Section 80C of the Indian Tax Act, 1961 to deduct up to Rs. 1.5 lakh from your income tax. It is possible to add additional three years to the account’s initial five-year term.
  • Every three months, the Senior Citizen Savings Scheme’s interest rate is changed, and it is derived from a number of variables, including market rates, inflation, and other considerations. Rates may not move significantly after adjustment due to a sluggish economy or a lack of major change.
  • The deposit must be used to offset the interest paid on the account, and any remaining funds must be remitted to the account holder. Premature withdrawals made after a year but prior to two years from the commencement date will incur costs equal to 1.5% of the deposit, which will be taken from the deposit before the depositor is paid.


With an annual return of 8.6%, the SCSS account offers a higher rate of return than a savings or money market account. Investments in SCSS are eligible for a tax deduction of up to Rs. 1.5 lakh under Section 80C.