Senior Citizen Saving Scheme Interest Rate

At the Union Budget 2023, Finance minister Nirmala Sitharaman has proposed to double the senior citizen savings scheme deposit limit from Rs.1,000 to Rs.15 lakh.  

SCSS Interest Rates

• The Senior Citizen Saving Scheme interest rates, in accordance with RBI directives, is 8.20% per annum, and is computed quarterly.
• This is payable from the date of deposit of 31st March/30th Sept/31st December in the first go and after this, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December (as per post offices).
• Applicant needs to be at least 60 years old or above on the date of opening of an account.
• A joint account can be opened with the depositor’s spouse only. The first depositor in joint account has to be the primary investor.
• Applicant can also be 55 years old or more, but less than 60 years old. He/she needs to have retired on superannuation or otherwise on the date of opening an account.
• Interest amount can be drawn through auto credit into savings account.
• In case the depositor does not close or extend the account on maturity, his/her account will be treated as matured. In this case the depositor will be enjoy interest rate applicable to the deposit under post office savings account (during the post maturity period).
• Any retired personnel of Defence Services (excluding civilian Defence employees) are eligible to open this account irrespective of the aforementioned age limit. But they must fulfil the other specified conditions.

• Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) cannot open this type of account.
• The deposit amount should be in multiple of one thousand rupees.
• The depositor also needs an age proof to open the scheme.
• One single depositor has the freedom to hold more than one account of this scheme. But this is subject to the condition that deposits in all the accounts, added together should not exceed a limit of Rs. 15 lakhs.
• The maturity period is five  years.
• After a maturity period of five years, the depositor may extend the account for a further period of three years. In this case, an application form should be made within a period of one year (after the date of maturity period).
• If there is only one deposit in the account, then it needs to be in the multiple of one thousand rupees and cannot exceed rupees fifteen lakhs.
• Withdrawals are not permitted before the expiry of a period of five years from the date of opening of an account.
• If the deposit amount is less than a lakh, then it can be deposited in cash.
• The depositor has the freedom to choose one or more people as nominee/nominees, at the time of opening of the account. This can also be done any time after the opening the account. The procedure to carry it out is by an application on Form C accompanied by the passbook to the nearest Corporation Bank branch. The depositor can also cancel or change the course of the account, before expiry.
• To make a payment by cheque or demand draft, then draw it in favour of the depositor, and it should be endorsed in favour of the deposit office.
• At CBS post offices, quarterly interest of SCSS accounts can be credited in any savings account standing at any other CBS post offices.
• At post offices premature closure of the SCSS is allowed after one year. This is allowed only on deduction of an amount which is equivalent to 1.5% of the deposit amount. And this is after two years 1% of the deposit.