What is Senior Citizens Savings Scheme, 2004(SCSS)?
- 20 Comment
Introduction
In this article I will be writing about exisiting scheme for the senior citizen. The name of the scheme is Senior Citizens Savings Scheme 2004(SCSS). As name itself suggests, this scheme is only for the senior citizens(age above 60). This article will present you the details about this scheme and what are the benefits compare to other savings schemes. After reading the articles please post your comments. Subscribe to our articles here.
Senior Citizens Savings Scheme
The below table lists some of the key aspects about the scheme.
- Joint account is possible is SCSS, but only with the spouse. First account holder must be above 60 years.
- If both the spouses are senior citizen, they can open sepaerate account or jointly invest the maximum of Rs.15 lacs
- TDS is applicable to the scheme as interest payments have not been exempted from deduction of tax at source. The facility of furnishing a declaration in Form No. 15H (prescribed under the Income Tax Rules, 1962) is available to a person (payee) resident in India and who is of the age of 65 years or more at any time during the previous year
- The depositor may, at the time of opening of the account, nominate a person or persons who, in the event of death of the depositor, shall be entitled to payment due on the account
- If the account is closed after one year but before expiry of two years from the date of opening of the account, an amount equal to one and half per cent of the deposit amount shall be deducted.
- If the account is closed on or after the expiry from the date of opening of the account, an amount equal to one per cent of the deposit shall be deducted
The following are the list of Banks this scheme can be operated
- State Bank of India
- State Bank of Hyderabad
- State Bank of Indore
- State Bank of Bikaner and Jaipur
- State Bank of Patiala
- State Bank of Saurashtra
- State Bank of Mysore
- State Bank of Travancore
- Allahabad Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Punjab National Bank
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
- ICICI Bank Ltd.
Summary
Thank you for reading this article. I hope this article will be useful for the senior citizens who want to save the money with good interest rates and also in the short term. Other savings schemes like PPF has the long lock-in period of 15 years. Please post your feedback in the comments section.
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20 Comments on this post
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Somasekhar said:
Who is the President of N.C.S.S.
October 3rd, 2009 at 12:18 am -
krishnas said:
Hello Somasekhar,
SCSS is a scheme which can be opened by any bank bu following the rules given by RBI.
Thanks,
KrishnaOctober 3rd, 2009 at 12:28 am -
h.m.varma said:
Does SCSS come under section 80c of income tax for tax benifit?
October 7th, 2009 at 4:15 am -
krishnas said:
Hello Varma,
SCSS not coming under section 80. You can not claim the tax benefits for the investments on SCSS.
Thanks,
KrishnaOctober 7th, 2009 at 4:24 am -
Priya Rajan said:
hi
my dad is in a confusion regarding this. Actually, SBI, kailasapuram trichy staff state that this scheme is no longer valid. Please clarify whether this is still valid?
Thanks
PriyaOctober 14th, 2009 at 9:43 am -
T.R.RANGANATHAN said:
SCSS , can this be opened by both husband and wife. Husband jointly with wife and wife jointly with husband. In which case can the total investment be Rs.30 Lacs ! Pl clarify.
November 13th, 2009 at 5:26 am -
krishnas said:
Hello RANGANATHAN,
It can be opened jointly with spouse. Both of them should be senior citizen. In that case the total investment up to Rs.3000000.
Thanks,
KrishnaNovember 13th, 2009 at 5:32 am -
B.subrahmanyam said:
My wife retired from LIC recently.
We are not able to decide as to where to deposit the retirement benefits.
Can you sugest safe return plans ?
November 13th, 2009 at 9:02 am -
krishnas said:
Hello Subramanyam,
Thank you for the comments. It is better to invest in the various schemes instead of putting all money in one place.
Since you are looking for the more safe return, invest in the bank’s fixed deposit.Thanks,
KrishnaNovember 13th, 2009 at 9:29 pm -
promode kapoor said:
What is the procedure for withdrawal by a nominee after the death of the SCSS account holder
January 2nd, 2010 at 2:36 am -
rajan kumaramangalam said:
is this scheme still in operation?
January 18th, 2010 at 11:27 pm -
krishnas said:
Yes..but with new name
January 19th, 2010 at 7:43 pm -
Debajit said:
What is the new name (as you say above), under which SCSS is in vogue now? No Bank (listed ones) seems to know about this scheme. Pls articulate in as much details as possible.
February 15th, 2010 at 2:37 am -
J.B Chaudhuri said:
I would like to know wheather the max limit of 15lacs can be done in the same name but in two books like 10 and 5 lacs. Pl help
February 25th, 2010 at 12:24 am -
Madhusudan said:
1. Why has the “Age relaxation feature for Defence(Non Civilian) Personnel” not written in the article? Is that the respect given to Indian Armed Forces personnel on your Website?
2. The rule position of 65 years is not mentioned anywhere in SCSS-2004 rules.
3. The write up has been posted here without any check. All the data is available in every detail at http://india.gov.in/citizen/senior_citizen/benefit_defence.php and http://india.gov.in/outerwin.php?id=http://www.rbi.org.in/scripts/FAQView.aspx?Id=62
4. These are the official websites of Govt of India and Reserve bank of India.
5. All the commenters are advised to search properly on internet and you will find genuine information from genuine source.
6.For example one person said Rs30 Lakhs is allowed for joint investment in SCSS, which is totally wrongMarch 4th, 2010 at 8:11 am -
Tushar Chaudhuri said:
My deposits under Sr Citizen Sav. scheme were matured after Five Yrs.SBI has extented one account for Three Yrs more and One account for FIVE years.I wrote them saying that there is provision for extending Five Yrs from the date of maturity.But no reply.
MAY I WITHDRAW MY AMOUNT AFTER ONE YEAR FROM THE ACCOUNT WHICH IS EXTENDED FOR FIVE YEARS MORE?IS THERE ANY PENALTY BE IMPOSED ON ME FOR WITHDRAWAL?
Request kind advice.
Regards.
Tushar Chaudhuri 72 yrs
USA.March 25th, 2010 at 2:33 pm -
kumardasija said:
Hello Varma,
SCSS not coming under section 80. You can not claim the tax benefits for the investments on SCSS.
Thanks,
Krishna
This is incorrect.
Now for the year 2009 april to 2010 March, you are eligible for income tax deduction.
INSERT (AY 2008-09)
Senior Citizens Savings Scheme 2004 and the Post Office Time Deposit Account added to the basket of saving instruments under Section 80C of the Income Tax Act.March 29th, 2010 at 4:03 am -
Amit said:
in senior citizen saving scheme, can amount be deposited at any frequency or only one time deposit is allowed?
-Amit
April 30th, 2010 at 3:13 am -
Wajihul Hassan Ansari said:
pl clarify tha
that whether age bar is must for spouse if depositing any amount by his name
i have deposited max amount i.e. Rs. 15 lakh now some money i want to deposit in spouse name but she is not sr citizen age groupplease clarify the issue as early as possible
September 1st, 2010 at 6:39 am
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