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Senior Citizens Savings Scheme (SCSS)

Post Office Senior Citizens Savings Scheme has been notified with effect from August 2, 2004. The Scheme offers a new avenue of investment and return for Senior Citizen. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Salient features of PO SCSS Accounts

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Where to open SCSS account?

An eligible citizen can open account under Senior Citizens Savings Scheme (SCSS) at any Authorised Bank or Post Office.


Any citizen, who has attained age of 60 years or above on the date of opening of the account.

Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.

No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.

A depositor may open the account in his individual capacity or jointly with spouse.

More than one account can be opened provided the total amount deposit does not exceed the prescribed limit.

Eligible applicants can open account by submitting application on Form A.

Non-residents and HUFs are ineligible to open the account under the scheme.

Minimum amount

₹ 1,000/-

Maximum amount

₹ 15,00,000/- (₹ fifteen lacs). In case of retiring employees the amount cannot exceed the amount of retirement benefits.

Maturity period

Five years

The depositor may extend the account for a further period of 3 years by submitting application on Form B

Nomination facility


A depositor may change nomination by submitting application on Form C.

Interest Rates

PeriodInterest Rate
Upto 31.03.20129.00% p.a.
01.04.2012 to 31.03.20139.30% p.a.
01.04.2013 to 31.03.20149.20% p.a.
01.04.2015 to 31.03.20169.30% p.a.
01.04.2016 to 30.09.20168.60% p.a.
01.10.2016 to 31.03.20178.50% p.a.
01.04.2017 to 30.06.20178.40% p.a.
01.07.2017 30.09.20188.30% p.a.
01.10.2018 to 30.06.20198.70% p.a.
01.07.2019 to 31.03.20208.60% p.a.
01.04.2020 onwards7.40% p.a.

Interest Payment

Premature withdrawal

In case the account is closed after expiry of one year but before expiry of two years from the date of opening of the account, an amount equal to 1.5% of the deposit shall be deducted and the balance paid to the depositor.

Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years on deduction of 1% interest.

Application for premature closure of the account may be submitted on Form E.

No deduction shall be made in case of premature closure of an account at any time due to death of a depositor. Application for premature closure by spouse (Joint Holder)/nominee(s)/legal heirs of the account may be submitted on Form F.

Tax benefits

The investment under the scheme is eligible for deduction from taxable income under section 80C of Income Tax Act.

Interest Taxability

With effect from 1st April 2018 (AY 2019-20) Senior Citizens (i.e. Residents aged 60 years or above) are eligible for exemption of interest income from Bank / Post Office deposits (Saving accounts / Time deposits / RD accounts) upto ₹ 50,000/- under Section 80TTB. (They are, however, not eligible for rebate under section 80TTA.)

Other features

The account may be transferred from one deposit office to another in case of change of residence. A transfer fee of rupees five per lakh of deposit is payable where the deposit is of ₹ one lakh or above.

On opening of an account, the depositor shall be given a pass book immediately, alongwith the depositor\'s copy of the pay-in-slip (Form-D) duly stamped and signed by the deposit office.

Disclaimer : This site does not make any claim that the information provided on its pages is correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

Updated : June 29, 2019