Post Office Senior Citizen Savings Scheme (SCSS)

Post Office Senior Citizen Savings Scheme (SCSS) is the most popular savings instrument for people over 60 years of age. Being a Govt. backed small savings scheme, SCSS ensures highest security with a regular income source.
Post Office SCSS scheme is also popular for its high interest rate and tax saving nature.
You can open a Senior Citizen Savings Account to invest your hard earned retirement corpus in a safe product. It offers a quarterly interest payment while minimizing your taxes. The current post office SCSS interest rate 2018 is 8.3% per year. And, the quarterly interest of SCSS is payable on 1st working day of April, July, October and January.

POST OFFICE SENIOR CITIZEN SCHEME INTEREST RATE 2018
SCSS account in post office will give you an interest rate of 8.3% per annum.
The interest rates are fixed periodically. Therefore, make sure to check the current interest rate of post office Senior Citizen Savings Scheme, before opening an account.
Where Can You Open an Account?
You can open the account in any of your nearest/ preferred post office.
DOCUMENTS REQUIRED FOR POST OFFICE SENIOR CITIZEN SAVINGS SCHEME
The needed documents for opening an account are:
An account opening form from your nearest post office
Two passport size photographs
Age Proof like Passport, Voter ID card, PAN card, Driving license, Senior Citizen Card, Ration card, Birth certificate issued by MC/Gram Panchayat/District office of registrar of births and death or from school
Address and Identity Proof like Aadhar Card, passport or PAN card
HOW TO OPEN SENIOR CITIZEN SCHEME IN POST OFFICE?
First of all, collect all the documents mentioned above. Prepare your cash (amount below Rs. 1 Lakh) or Cheque (amount above 1 Lakh).
Fill up the SCSS account opening form carefully while providing the nominee details. Also, don’t forget to carry the original identity proof for verification purpose. Finally, get a witness signature and complete the procedure to get started.
POST OFFICE SENIOR CITIZEN SAVINGS SCHEME FEATURES
Any Indian citizen of age 60 years and above can open an account under this scheme
An individual of the age between 55 years and 60 years who has retired on superannuation or under VRS can also open an account. However, you need to open the account within one month of receipt of retirement benefits. Also, the amount should not exceed the amount of retirement benefits.
You can have more than one account individually or jointly with your spouse
While opening a Senior Citizen Savings Account, you can pay by cash (for amount below 1 lakh) and by cheque for above
In case of a cheque, the date of realization of the cheque is considered as the date of opening of account
Maturity period of SCSS is 5 years
Nomination facility is available at the time of opening and also after opening of the account
You can get tax benefit under Section 80C of the Income Tax Act for your investment amount
TDS is deducted at source on the interest amount if it exceeds Rs 10,000/- p.a.
You can get the quarterly interest of your SCSS account auto credited into savings account standing at CBS Post office
Premature closure of Senior Citizen Scheme is allowed after one year. The amount of deduction is 1.5% of the deposit, wheras after 2 years it is 1%
After maturity, you can extend the account for another three years. But you need to apply within one year of maturity by giving an application in prescribed format
In case of extended account, you can close it at any time after expiry of one year of extension without any penalty
You can also transfer your SCSS account from one post office to another
POST OFFICE SENIOR CITIZEN SAVINGS SCHEME (SCSS) TAX BENEFIT
Senior Citizen Scheme in post office offers tax benefit under Section 80C. However, the quarterly interest payout is taxable income for you. And in case the income exceeds Rs 10,000 in a financial year, it is also subjected to tax deduction at source (TDS).
Minimum and Maximum Deposit in Post Office Senior Citizen Account
The minimum investment amount is Rs. 1,000/- and the maximum limit is Rs. 15,0,000/-. You can invest a one time fixed sum and have a steady source of income.
POST OFFICE SENIOR CITIZEN SAVINGS SCHEME ONLINE PAYMENT FACILITY
This facility is currently available for Post Office RD account through Electronic Clearing Service (ECS). Also, if you have an agent, he or she can use the post office agent portal and do the online payment for you. Information on Post Office Senior Citizen Scheme online payment is not yet clear. However, you can ask your post office branch for exact details on this. Furthermore, you may also ask your agent for the availability of online payment mode.
Moreover, you can automate this scheme very easily. For that you need to open a saving bank account and give a request for automatic transfer of Senior Citizen Scheme interest to recurring deposit account through your Post Office savings account.
POST OFFICE SENIOR CITIZEN ACCOUNT OPENING FORM
You can download post office Senior Citizen Scheme account opening form from here.
FAQS ON POST OFFICE SENIOR CITIZEN SCHEME
Can I open post office Senior Citizen Savings scheme online?
No, this facility is not yet available. Therefore, you need to open an account in the post office itself. However, after opening the account you may opt for the ebanking facility of India Post.
What is the maturity value of post office SCSS?
You can use the post office Senior Citizen Savings scheme calculator to calculate maturity amount. Also, make sure to provide the current interest rate of SCSS.
Is post office Senior Citizen Scheme premature withdrawal possible?
You can prematurely withdraw an amount, only after completing one year period. However, before 2 years you need to pay a penalty deduction of 1.5% of the deposit and after 2 years (before maturity) 1% of the deposit.
What is the tenure of post office Senior Citizen Savings scheme premature closure?
Premature closure is permissible with the above rules.
What is the maturity period of Senior Citizen Scheme post office?
It is 5 years at the time of opening. You can also extend the account for another 3 years, if you wish.
When will I receive the interest from Senior Citizen Savings scheme in post office?
You will receive the interest on quarterly basis. It is payable on 1st working day of April, July, October and January.
Hope you will find the article useful. Please feel free to share your queries and experiences, if any. Also, don’t forget to share this article with your friends who might want to open an account under Post Office Senior Citizen Savings Scheme (SCSS).

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