What is Senior Citizens Savings Scheme, 2004(SCSS)?

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

  1. State Bank of India
  2. State Bank of Hyderabad
  3. State Bank of Indore
  4. State Bank of Bikaner and Jaipur
  5. State Bank of Patiala
  6. State Bank of Saurashtra
  7. State Bank of Mysore
  8. State Bank of Travancore
  9. Allahabad Bank
  10. Bank of Baroda
  11. Bank of India
  12. Bank of Maharashtra
  13. Canara Bank
  14. Central Bank of India
  15. Corporation Bank
  16. Dena Bank
  17. Indian Bank
  18. Indian Overseas Bank
  19. Punjab National Bank
  20. Syndicate Bank
  21. UCO Bank
  22. Union Bank of India
  23. United Bank of India
  24. Vijaya Bank
  25. ICICI Bank Ltd.


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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  1. says


    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?



    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.

  3. says


    It can be opened jointly with spouse. Both of them should be senior citizen. In that case the total investment up to Rs.3000000.


  4. B.subrahmanyam says

    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 ?

    • says

      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.


  5. Debajit says

    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.

  6. J.B Chaudhuri says

    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

  7. Madhusudan says

    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 wrong

  8. Tushar Chaudhuri says

    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.
    Request kind advice.
    Tushar Chaudhuri 72 yrs

  9. kumardasija says

    Hello Varma,

    SCSS not coming under section 80. You can not claim the tax benefits for the investments on SCSS.

    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.

  10. Amit says

    in senior citizen saving scheme, can amount be deposited at any frequency or only one time deposit is allowed?


  11. Wajihul Hassan Ansari says

    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 group

    please clarify the issue as early as possible

  12. Roshni R Sethi says

    The bank says one can deposit ‘x’ amt only once every month.
    eg. If I want to invest 15 lakh, can I break it into 5 deposits of 3lakh each? This is to safeguard against premature penalty.
    I am a Single-Depositor (being a widow)

  13. says

    Dear Sir, My wife has taken voluntary retirement at the age of 59. She wants to invest 15 Lakhs in the SSCS. But the Bank said that the amt shd have been received within one month and actual pensionary benefits only will be considered with proof and no other amts wd be considred. Another issue, can she claim claim exemption of TDS by filing 15G ? Pl.inform me on these two points. regards.

  14. Dr. Kanwar Singh Yadav says

    Respected Sir,
    I have retired under superannuation scheme. I invested Rs.15.Lac in SCSS 2004.last year. Now I want to invest Rs. 15.Lac in spouse name, but she is not senior citizen age group.
    Please clarify the issue as early as possible.

    Your faithfully.
    Dr. Kanwar Singh Yadav
    Date : 26. 12. 2010

  15. R.K.Sharma says

    Dear Sir,

    What proof will be given to prove whether someone is senior citizen
    or not. What you suggest to invest with Govt. undetaking Banks or
    with Private Banks ? Rate of interest differs of both the banks.

  16. Vishnu Sharma says

    My parents opened a joint account under Senior Citizens Savings Scheme 2004 with State Bank of India. The account was in joint name of my mother and father. Since they had that in joint name there was no nomination on the account. Unfortunately both of them expired in a very short span of time. We tried to claim the account and they asked us to go through some documentation which took almost a year and after that they said that it wont be sufficient for this account and they will require a succession certificate from court. Then the court proceedings started and it took another 2 years to get the succession certificate. Now the certificate has been presented to the bank and they are releasing the money but they refuse to pay the interest earned on the account during all this time. I have read the terms and conditions for the account and I didnt find any clause which says that we as successors are not eligible to claim that interest. State Bank of India is refusing to release that amount. Please suggest what can be done. It has already become a long unresolved issue for us. Your help will be much appreciated.

  17. ns nathan says

    Dear Sir,
    would appreciate if you can kindly send me the e-copy of Withdrawal Form for SCSS 2004 on maturity, pl
    many thanks,
    kind rgds,
    09 Oct 11

  18. P D Gujarati says

    If a depositer want to renew the SCSS after lapse of 16 months from matuirity of the original invrestment, from retrospective effect, is it permissible?

    • C.V.K.REDDY says

      Mr. Jayesh,

      SCSS is still continuing. As the agent is not getting any commission from SCSS, agent is discouraging the public for not investing or making some excuses.

  19. Mr. Hoshi Elavia says

    After going through various questions, I feel that though SCSS-2004 looks good,it still has not picked up or advertised sufficently.
    All banks persuade clients not to go for it.
    Again I understand that at time of withdrawl some withdrawl form is to be filled which is not easily traceable by the banks.
    What is the difference between SCSS & Bank FD ?

  20. bksahoo says

    Ihave opened a scss on 07.11.12 want to get transfered to sbi bhubaneswar from sbi burnpur code 049.kindly confirm whethre it is possible

  21. govind kumar says

    sir, i have taken vrs from indian air force , after completion of 20 years of service and my age is 37 years now . will i also be considered with this SCSS 2004 .As SCSS 2004 rules says this para also
    Provided further that the retired personnel of Defence Services (excluding Civilian Defence
    Employees) shall be eligible to subscribe under the scheme irrespective of the above age limits subject
    to the fulfilment of other specified conditions.
    pl guide me as i have to invest my money for investment , THANK U

  22. sc agrawal says

    I came to know that THE INVESTMENT IN SCSS SCHEME comes U/S 80 c


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