The SCSS scheme is for senior citizens who are 60 years and above of age. The scheme was started to assist senior citizens. Also, the benefits of the Senior Citizens Savings Scheme can be availed by those between the age of 55 years to 60 years and have voluntarily chosen retirement (VRS) Voluntary Retirement Scheme.
This Savings scheme has a duration period of 5 years which the individuals receive a rate of interest of 8.7% p.a. A minimum investment of Rs. 1000 has to be made by the individual towards the SCSS scheme and the maximum investment one can make is Rs. 15 lakh. According to Section 80C of the Income Tax Act, there are tax deductions that are also available over the investment that is made by the individual in the scheme. On the other hand, an individual can also transfer his/her SCSS accounts from the post office to the bank and from the bank to the post office.
SCSS is the right choice to invest for citizens above the age of 60 years as it will aid them in making money then. This scheme offers individuals complete security, and it is a highly recommended and long-term saving option. The features of the SCSS are mostly associated with any government-sponsored savings or investment scheme. An individual can apply for this scheme at any post office across India or via certified banks as well.
The senior citizens of India who are above the age of 60 years are completely eligible to apply for this scheme. Individuals who have opted for the VRS (Voluntary Retirement Scheme) or superannuation between the age of 55 years to 60 years can also apply for SCSS. In this case, the investment shall be made within a month of receiving the retirement benefits. Apart from that, retired defence personnel with a minimum age of 50 years can also apply for this scheme. It has to be noted that the HUFs and the NRIs are non-eligible for investment in this scheme.
The maximum amount of money that an individual can invest individually or jointly in the SCSS account is Rs. 15 lakhs. Howsoever, the amount of money that an individual invests in the scheme should not exceed the amount of money that is received on retirement. Thus, it can be said that an individual can invest Rs. 15 lakh or the amount which is received as a retirement benefit whatever is lower. Also, if the amount of money is below Rs. 1 lakh then the account can be opened by cash but in case the amount is exceeding Rs. 1 lakh then the account can be opened through cheque.
For instance, at an 8% p.a. interest rate and an investment amount of Rs.30 lakh, the monthly income is stated to be Rs.20,000 per month for each investor.
An individual can open an SCSS account with any authorized bank or post office across India with the appropriate required documents. To open an SCSS account, Form A must be filled out by the individual. Also, it requires identity proof like a pan card or passport that must be presented before the bank or post office. Furthermore, appropriate address proof documents like a telephone bill or an Aadhar card are mandatory to be presented. Apart from this, 2 passport-size photographs along with age-proof documents are required. The age-proof documents could be a passport, senior citizen card, or birth certificate. It has to be noted that all the documents mentioned above must be self-attested. SCSS has a very flexible tenure with an average period of 5 years which can be easily extended up to 3 additional years.
SCSS has a tenure of 5 years which can be also extended up to 3 additional years. If individual wishes to extend the scheme for further 3 years then he/she must fill the Form B which is regarding the extension of the scheme. Here, only one extension is allowed and such extended accounts can also be closed after one year of extension, and that too without any penalty. Also, this scheme enables premature withdrawals but that can happen only after one year of opening the account. In case of the death of the investor, no charges or penalty is applied at the time of closure of the account.
Also, there are many other banks as well where this scheme is applicable or can be applied. Thus, we can conclude that the Senior Citizens Savings Scheme is a very good investment option for all Senior Citizens who seek the least amount of risk and good Returns. This scheme guarantees monthly returns at a rate of 7.4% interest. Senior Citizens can invest an amount of up to Rs. 15 lakhs in this scheme and secure their future after retirement.