Senior Citizen Savings Scheme (SCSS)

About Senior Citizen Savings Scheme (SCSS):

• SCSS was launched with the main aim of providing senior citizens in India a regular income after they attain the age of 60 years old.
• Who is eligible? 

• Indian citizens above the age of 60 years.
• Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation.
• Retired defence personnel above 50 years and below 60 years of age.

• Maturity: It has a maturity period of five years. But, a depositor can extend one's maturity period for another three years.
• Number of accounts: Individuals are allowed to operate more than one account by themselves or open a joint account with their spouse.
• Deposit Limits: Eligible investors can make a lump sum deposit 

• Minimum Deposit– Rs. 1,000 (and in multiples thereof)
• Maximum Deposit– Rs. 15 Lakh or the amount received on retirement, whichever is lower(Increased to Rs 30 lakh in Budget 2023). 

• Interest Payment: Under SCSS, the interest amount is paid to the accountholders quarterly.
• Premature withdrawal: After one year of opening the account, premature withdrawal is allowed.
• Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.

 

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Q1) What is Pradhan Mantri Vaya Vandana Yojana (PMVVY)?

PMVVY is an insurance policy-cum- pension scheme that provides alternative avenues of income to senior citizens of the country. Backed by the Indian government, this pension plan is provided by Life Insurance Corporation (LIC) which caters to one’s need for post-retirement financial planning.

Source: Senior Citizen Savings Scheme's investment limit increased to Rs 30 lakh: Budget 2023