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Senior Citizens Savings Scheme (SCSS)

Post Office Senior Citizens Savings Scheme has been notified with effect from August 2, 2004. The Scheme offers a new avenue of investment and return for Senior Citizen. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Salient features of POSCS (Post Office Senior Citizens Savings) Scheme

ItemDescription
EligibilityAny citizen, who has attained age of 60 years or above on the date of opening of the account.

Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.

No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.

A depositor may open the account in his individual capacity or jointly with spouse.

Eligible applicants can open account by submitting application on Form A.

Non-residents and HUFs are ineligible to open the account under the scheme.

Minimum amountRs. 1,000/-
Maximum amountRs. 15,00,000/- (Rs. fifteen lacs)
Maturity periodFive years

The depositor may extend the account for a further period of 3 years by submitting application on Form B

Nomination facilityAvailable

A depositor may change nomination by submitting application on Form C.

Interest
PeriodInterest Rate
Upto 31.03.20129.00% per annum
01.04.2012 to 31.03.20139.30% per annum
01.04.2013 onwards9.20% per annum

Interest is payable quarterly on 31st March, 30th June, 30th September and 31st December.

If the interest payable every quarter is not claimed by a depositor, such interest do not earn additional interest.

Premature withdrawalIn case the account is closed after expiry of one year but before expiry of two years from the date of opening of the account, an amount equal to 1.5% of the deposit shall be deducted and the balance paid to the depositor.

Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years on deduction of 1% interest.

Application for premature closure of the account may be submitted on Form E.

No deduction shall be made in case of premature closure of an account at any time due to death of a depositor. Application for premature closure by spouse (Joint Holder)/nominee(s)/legal heirs of the account may be submitted on Form F.

Tax benefitsAvailable w.e.f. Financial Year 2007-08 i.e. Assessment Year 2008-09
Interest TaxabilityTaxable
Other featuresThe account may be transferred from one deposit office to another in case of change of residence. A transfer fee of rupees five per lakh of deposit is payable where the deposit is of Rs. one lakh or above.

On opening of an account, the depositor shall be given a pass book immediately, alongwith the depositor's copy of the pay-in-slip (Form-D) duly stamped and signed by the deposit office.