Senior Citizens Savings Scheme Account (SCSS): How Rs 10 lakh, Rs 20 lakh, Rs 30 lakh investment will become Rs 14.10 lakh, Rs 28.20 lakh and Rs 42.30 lakh (2024)

FAQs

How to invest 30 lakhs in SCSS? ›

You can deposit money in your SCSS account only in a single payment. Thus, as an account holder you can operate more than one account under the scheme subject to the condition that the deposits in all the accounts taken together shall not exceed the maximum limit of Rs. 30 lakh.

The maturity period of SCSS is 5 years. However, individuals can extend the maturity period for 3 more years by submitting an application. The application for an extension of maturity should be given in the last year.

Maturity Tenure

The maturity period for the SCSS scheme is 5 years. It can be extended for another 3 years, effectively bringing up the period to 8 years. If an individual is willing to extend such a period by 3 years, he/she shall submit Form B after duly filling it. An extension is allowed only once.

Is premature withdrawal of the deposits from the accounts under the SCSS, 2004 permitted? Yes, premature withdrawals are allowed, although a premature closure of the savings account is permitted only after a year, whereby the account holder will be charged 1.5% of the savings and 1% after two years.

Online application facility is not available for SCSS. In order to open a SCSS account, the customer must visit the post office or bank branch and fill up the related form. The same form should be attached with KYC documents, age proof, ID proof, Address proof and cheque for deposit amount.

The Senior Citizen Savings Scheme (SCSS), Pradhan Mantri Vaya Vandana Yojana (PMVVY), Post Office Monthly Income Scheme (POMIS), Senior Citizen Fixed Deposits, National Pension System (NPS), and Equity Linked Savings Scheme (ELSS) are some of the best investment options for senior citizens to secure their financial ...

Which deposit is best for senior citizens? ›

For senior citizens, fixed deposits (FDs) are considered a reliable source of income and capital security, making them a prudent financial choice, especially for older investors seeking stable returns.

Senior Citizen Savings Scheme (SCSS) offers 8.2% interest rate; All you need to know about tax benefits, investment limit & more. Important features of SCSS.

It is important to note that the SCSS investment is subject to a lock-in period of 5 years, which can be extended for an additional period of 3 years. However, the extension can be done only once, and the interest rate for the extended period will be the prevailing rate at the time of extension.

In the unfortunate event of the death of the SCSS account holder, no penalty will be applied to the account. However, the rules state that the SCSS account must be closed. The deposited amount, along with applicable interest, will be paid to the nominee or the legal heir.

Senior Citizen Savings Scheme (SCSS) account can be closed at any time by making an application in Form-2. However, the premature closure form has to be duly signed and submitted only by the SCSS account holder, as per SCSS rules. This means anyone cannot close your SCSS account without permission at any time.

(i) Minimum deposit shall be Rs. 1000 and in multiple of 1000, subject to maximum limit up to Rs. 30 lakh in all SCSS accounts opened by an individual.

Long-Term Investment Options to Consider

For example, you can deposit your 25 lakhs of lump sum in an FD for 10 years and earn a monthly or quarterly interest amount as income. FD is one of the safest long-term investments and is preferred by people who do not want to risk losing their money.

The SCSS has a maximum investment limit of Rs.30 lakh and is only available to Indian citizens aged 60 years or above.