Senior Citizen Savings Scheme (SCSS): Amazing option for rich post-retirement life! Know all key money details here

Everyone wants to lead a peaceful post-retirement life but this only possible the when the financial position is sound. How to get there? Numerous options are available and government-backed savings instrument Senior Citizens Savings Scheme (SCSS) is one such option to secure a financially stable future. Here is what will get you on your way to cementing a great financial position for retirement years. 

Senior Citizens Savings Scheme: Eligibility

- An individual may open an account in an individual capacity, or jointly with a spouse

- An individual who has attained the age of 60 years and above. 

- An individual who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account. 

- The retired personnel of Defence Services attaining the age of fifty years. 

Senior Citizens Savings Scheme: Maturity and extension

- The Senior Citizens Savings Scheme deposit matures after a period of 5 years from the date of account opening but can be extended once by an additional time period of 3 years. 

Senior Citizens Savings Scheme: Minimum investment 

- The SCSS account can be opened with a minimum deposit of one thousand rupees or any sum in multiple of one thousand rupees

Senior Citizens Savings Scheme: Maximum investment limit

- Senior Citizens Savings Scheme can see a maximum investment limit of Rs 15 lakh per individual. 

Senior Citizens Savings Scheme: Interest rates

-Noteworthy, the interest rates for Senior Citizens Savings Scheme is substantially higher than bank FD rates for senior citizens. 

Senior Citizens Savings Scheme: Interest rates

-As of now, the Senior Citizens Savings Scheme offers an interest rate of 7.4%

Senior Citizens Savings Scheme: Compounding frequency 

- The compounding frequency of SCSS is Quarterly - means quarterly interest will be paid to senior citizen investors

- If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest

Senior Citizens Savings Scheme: Premature closure of SCSS account

- Premature payment permitted at any time after opening the account but with a penalty