Senior Citizen Saving Scheme |
|
| Eligibility | Individual age above 60 years |
| Interest rate | 8.60% p.a (SBI ) 8.7% POst office |
| How to open | The post office or SBI (any national banks) |
| Investment Limit Per Year | up to 15 lakhs |
| Premature closing | after 1 year or in case of death |
| Maturity / Lock-in Period | 5 years |
| Extension | 3 years
|
| Tax Benefits | 80C & 80TTB |
How Senior Citizen Saving Scheme Works?
It’s like a fIxed Deposit once you invest lump sum you get pensions (interest accumulated). generally you get once in 3 months.
31st March / 30th June / 30th September / 31st December. only 4 times a year.
SCSS Forms Application. renewal, nomination, withdrawal
- FORM A: Application
- FORM B: Renewal
- FORM C: Nomination
- FORM E: withdrawal maturity
- FORM F: Death of depositor
SCSS Interest rates 2019
| Time | Post office | SBI |
| 2019-20 (Q2) | 8.7 | 8.6 |
| 2019-20 (q1) | 8.7 | 8.6 |
| 2018-19(q4) | 8.7 | 8.6 |
| 2018-19(q3) | 8.3 | – |
| 2018-19(q2) | 8.3 | – |
| 2018-19(q1) | 8.3 | – |
SCSS Calculation Example
| Invested amount | interest rate | term | quarterly payment | monthly assumption |
| 5 | 8.7 | 5 years | 10875 | 3625 |
| 10 | 8.7 | 5 years | 21750 | 7250 |
| 15 lakhs | 8.7 | 5 years | 32625 | 10875 |
How to open SCSS Account at SBI or Post office?
Note: NRI & HUF are not allowed.
In case of SBI, you can download the SBI SCSS Application form here. fill the details.
visit the nearest branch. incase above 1 lakhs rupees cheque required. there is no online facility available for SCSS. But maybe other banks like ICICI, HDFC can do.
Opening at the office:
the process applies post office too. carry cheque or cash, fill the submit make deposit get the pension 4 times in a year. march June September and December month end.
Tax benefits
The lump sum you invested up to 1.5 lakh rebate under section 80c. for withdrawal amount up to 50,000 deductions available under section 80TTB from 2019-20 onwards.
Ex: You invested 5 lakhs (1.5 deductible while ITR) and After 1 year the quarterly payment 10875*4= 43500 (you don’t need to pay tax here because you are allowed to deduct up to 50,000 while filling ITR in case your total annual income exceeds 3 lakhs for senior citizens. check income tax slab ay 2019-20.