Senior Citizen Savings Scheme 2024

Senior Citizen Savings Scheme: This is a program sponsored by the Indian government which is administered to the general public by a list of banks that are certified as providing senior citizens savings schemes, and by the Postal Departments that have offices to serve the public.

There is an innovative senior citizen savings scheme offered by the government of India called the Senior Citizens’ Savings Scheme (SCSS). Through the SCSS, senior citizens can save for retirement and receive interest payments every three months. There is a minimum deposit requirement of Rs.1,000 to open an SCSS account.

Currently, SCSS has an interest rate of 8.2% a year. 

It is not permitted to deposit more than Rs.15 lakh (Now after budget 2023 the limit is 30 lakh). This scheme pays interest every 31 March, 30 June, 30 September, and 31 December.

Updates: A savings account is required for the credit of monthly, quarterly, and yearly interest in the Management Information System (MIS), Senior Citizens Savings Schemes (SCSS), and Time Deposits. The post office will no longer allow cash withdrawals from your MIS, SCSS, or Time Deposit accounts starting April 1, 2022. Pension income and interest from bank accounts of senior citizens above 75 are now exempt from income tax reporting under the Union Budget 2021-22.

Budget 2023 Updates: A maximum deposit of Rs 15 lakh has been increased to Rs 30 lakh for senior citizens saving schemes in Budget 2023. This increase in the deposit limit reflects the government’s commitment to providing greater financial security to the elderly population.

Quick Summary

Tenure 5 Years
Interest Rate SCSS has an interest rate of 8.2% a year.
Max Investment Rs. 15 Lakh (update after budget 2023 Rs. 30 Lakh)
Min Deposit Rs. 1000

Who Can Open Senior Citizen Savings Scheme?

Persons eligible to open an account in Senior Citizen Saving Scheme: The following persons are eligible to open an account in Senior Citizen Saving Scheme.

  •  Any individual who has attained the age of 60 years or above, or
  • 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, may open an account within 1 month of the date of receipt of retirement benefits. Defence personnel (excluding civilian Defence employees) retired on superannuation may open an account upon attaining the age of 50 years.

A HUF or a Non-resident Indian is not eligible to open an account under Senior Citizen Savings Scheme. However, if a depositor subsequently becomes a non-resident he can continue to avail of the benefits of this scheme on a non-repatriation basis.

An account may be opened singly or jointly with a spouse, by applying in Form A along with the amount of deposit. More than one account may be opened provided the total amount deposited does not exceed the maximum limit.

Where can an Account be Opened?

The deposit account under Senior Citizen Savings Scheme can be opened in any post office in India doing saving bank work and in all public sector banks, ICIC Bank, Axis Bank and HDFC Bank authorised for this purpose.

Aadhaar Number

An applicant should furnish his Aadhaar Number or proof of enrolment for Aadhaar, at the time of application for the Senior Citizen Savings Scheme. Existing account holders are also required to furnish their Aadhaar numbers latest by 31.3.2018.

Amount of Deposit

There can be only one deposit in multiple of Rs. 1000 subject to a maximum of Rs. 15 lakhs (30 lakh after budget 2023) in the Senior Citizen Saving Scheme. [In the case of retiring persons mentioned above deposit cannot exceed the number of retirement benefits or Rs. 15 lakhs, whichever is lower.]

How to Deposit in Senior Citizen Saving Scheme?

  • The amount may be deposited in cash (up to Rs. 1 lakh only) or by cheque/ demand draft drawn in favour of the deposit office (or drawn in favour of the depositor and endorsed in favour of the deposit office.)
  • The amount may be deposited by electronic mode of the account in a branch working on the CBS platform.

Nomination under Senior Citizen Savings Scheme

  • The facility of nomination is available under the Senior Citizen Savings Scheme.
  • Apply in Form C. NRIs and persons having dual citizenship (Indian and other) can be nominees, but in case of depositors’ death, they can neither continue the account nor the proceeds can be repatriated.

Interest under Senior Citizen Savings Scheme

Currently, SCSS has an interest rate of 8.2% a year. 

The deposit shall earn interest 8.2% (currently) has been set for SCSS for the quarter ending 31 March 2024 payable quarterly on 1st April/1st October and 1st January.

Interest can also be deposited into the savings bank account in an office/branch working on the CBS platform on the instrument of the depositor.

If quarterly interest is not the depositor, it will not earn any additional interest.

Senior Citizen Savings Scheme Maturity

  • The Senior Citizen Savings Scheme account will mature on expiry of five years from the date of opening.
  • The depositor. may however extend the account for a further period. of three years by applying in Form B within one year of maturity. In such a case, the deposit will earn interest at the prevailing rate on the date of maturity.
  • If the deposit is not so extended, it shall earn post-maturity interest at the prevailing POSB A/c rate.

Check Also: Senior Citizen Tax Planning

Pass Book

  • The depositor shall be provided with a passbook containing details of deposits interest and withdrawals.

Closure of account

  • The Senior Citizen Savings Scheme account shall be closed at any time after maturity on production of a pass book and a written application (withdrawal form) in Form E.
  • In case of death of a depositor before maturity, the account shall be closed and deposit refunded on an application in Form F alongwith interest to the survivor joint holder or nominee or legal heirs (in case there is no nomination or the nominee has also expired).
  • No deduction shall be made on premature closure of account on account of death.
  • The nominee/ legal heir in such cases is entitled to interest at the rate applicable to the scheme till the date of depositor’s death and Saving Bank rate of interest for the period from the date of death of the depositor to the date of closure of the account.
  • In case of a joint account (with spouse) or where the spouse is the sole nominee, the spouse may continue the account on the same terms and conditions.
  • If the spouse does not opt to continue the account shall be closed and deposit refunded with interest.

Premature closure of account

  • A depositor may close the Senior Citizen Savings Scheme account and withdrawn the deposit at any time after expiry of one year from the date of opening the account. However, a deduction of 1.5% (of deposit amount) shall be deducted if the account is closed after two years, and the balance paid to the depositor.
  • Since the penal amount has to be deducted from the principal amount, interest will have to be calculated on the total amount of deposit till the date of premature closure.
  • Closure of an account within one year may be considered on merits by the Ministry, in case of undue hardship.


  • An Senior Citizen Savings Scheme account may be transferred from one deposit office/bank to another, by making an application in Form G along with pass book.
  • If deposit is Rs. 1 lakh or above transfer fee of Rs. 5 per lakh of deposit shall be payable for the first transfer and Rs. 10 per lakh of deposit for second and subsequent transfers.

Tax Benefit

  • The amount deposited under this Senior Citizen Savings Scheme along with PPF/ LIC/ NSC/ ULIP, etc up to a maximum of Rs. 1,50,000 is eligible for deduction u/s 80C.
  • No TDS on furnishing a declaration in Form 15H/15G (as the case may be), or a certificate for lower deduction or on deduction of TDS from the Assessing Officer.
  • A declaration in From 15H may be furnished by a senior citizen if the tax on his estimated income for the financial year is nil. A declaration in From 15G may be furnished by any other person. if the tax on his estimated total income for the financial year is nil and the aggregate amount of interest credited or paid during the financial year is not more than the basic exemption limit in his case. A nominee can also furnish From 15G at the time of payment after the death of the depositor.

7 thoughts on “Senior Citizen Savings Scheme 2024”

  1. Please get a certificate of interest and TDS from concerned Post Office to explain the deviation. Either it is deduction at 10% or no deduction. Normally, once you officially submit 15 G or H the post office is prompt in keying in the data in your records. This is religiously done the same day. Hence, please inquire. The post office is a friendly place for senior citizens.

  2. I am getting yearly interest Rs,97,500/- only but tax deducted Rs,5819/- why? Is there any connected with submitted KYC in time?

  3. I have submitted 15H form with Pan card photo copy duly filled to sbi satpur on 2nd april2014. Branch code 3872 but branch deducted tax at source. Why?

  4. Interest income received from Senior Citizen Savings Scheme deposits is taxable and Tax will be deducted at source in case Form 15 G/H is not submitted in each year by the depositor by 31st. March


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