Senior Citizen Savings Scheme (SCSS) |
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| Eligibility | Individual age above 60 years, VR -55 age. |
| Interest rate | 7.4* as on 2020 |
| How to pen | any Post office or Bank |
| Investment Limit (only one time/ lump sum) | 1000 to 15 Lakhs |
| Premature withdrawal | After 1 year & within 2 years with 1.5% penalty, after 2 years 1% penalty on interest earned. |
| Premature closing | In case of death only |
| Maturity / Lock-in Period | 5 Years |
| Extension | 3 years |
| Tax Benefits | on investment 1.5 Lakh Every year under 80C,
on return For withdrawal 50,000 under 80 TTB. |
SCSS Interest rates Year wise 2020
changes each quarter.
| Period | Interest Rate |
| Q3 2020 july to sep | 7.4% |
| April to june (2020-21) | 7.4% |
| April to June 2019 (Q1 FY 2019-20) | |
| Jan to March 2019 (Q4 FY 2018-19) | 8.7 |
| Oct to Dec 2018 (Q3 FY 2018-19) | 8.7 |
| Jul to Sep 2018 (Q2 FY 2018-19) | 8.3 |
| Apr to Jun 2018 (Q1 FY 2018-19) | 8.3 |
| Jan to March 2018 (Q4 FY 2017-18) | 8.3 |
| Oct to Dec 2017 (Q3 FY 2017-18) | 8.3 |
| Jul to Sep 2017 (Q2 FY 2017-18) | 8.3 |
| Apr to Jun 2017 (Q1 FY 2017-18) | 8.4 |
SCSS VS PMVYY VS PO MIS
NO cumulative interest‘, unlike a bank fixed deposit (FD) or NSC (National Saving Certificate). 5 years lockin,
Post Office Monthly Saving Scheme 7.7% Interest payable monthly. lock in period of 5 years.
SCSS Pays Quarterly once
PMVYY:
- Investment amount same as SCSS but in case of two senior citizens 15*2 = 30 lakhs
- 10 Years Maturity Period.
- 75% of loan After 3 years
- Premature Closing: Only critical illness 98% of the value.
- Mode of Pensions payment: Monthly/3/6/12 months but SCSS only Payouts Quarterly once in 3 months.
- Interest rates: Based on pension withdrawals: monthly 8%, Quarterly 8.5%, half year;y 8.15% yearly 8.3% but SCSS only have single Interest rate 8.7%* (Both are monitor & regulates quarterly):
- No Tax Benefit for PMVYY
Senior Citizen saving Scheme calculation
| Investment | interest rate | Quarterly | Monthly |
| 5 lakhs | 8.7 | 10875 | 3625 |
| 10 lakhs | 8.7 | 21750 | 7250 |
| 15 lakhs | 8.7 | 32625 | 10875 |
Interest payable on March, June, September, December end of the month.
How to open the Senior Citizen Saving Account Scheme at the Post Office/bank?
- Visit the Post Office with your KYC (ID & Address Proof) Ask them To open SCSS Account,
- Pay the Minimum Amount, Then your Account Will be Open, make regular Payments either Monthly Or Annual offline or online.
- Don’t forget to deduct this amount if are under the income tax slab.
- You should also open Saving Account with Post office.
SCSS Account Opening at the bank:
the same Process applies, but you have already KYC Seeded with Bank there may be an option to open SCSS online. but you have to visit the bank in most cases.
Scss interest rate SBI/Post office etc 2020 q1
Sbi 7.4%
post office 7.4%
Banks offered scss
Andhra bank, Bob, Syndicate bank,
- Andhra Bank
- SBI
- Bank of Maharashtra BOM
- Allahabad Bank
- Bank of Baroda BOB
- PNB
- Indian Bank
- Indian Overseas Bank
- United Bank of India
- Corporation Bank
- Canara Bank
- Dena Bank
- Syndicate Bank
- Central Bank of India
- UCO Bank
- Union Bank of India
Is SCSS better invest in Lump Sum and get every month income like pensions
Most people suggests LIC Annuities these are gives less returns (because insurance investment).
Lets calculate the return,
You & me we both senior citizens so we need to get monthly expenditures by parking out lumpsum amount.
Interest Rate 7.4% due to coid 19
Investment amount, 1,2,5, 10 lakhs
make sure the amount is white money (tax paid on it), if you sold the property after 3-5+*(not exactly) its tax free.
SCSS SBI Return calculation 1 or 1 Lakhs
The calculator we use now is compound calculator,FD calculator adds (3 months compounding)
SCSS,
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| Principal amount: | |||
| Rate of Interest: | |||
| Tenure: | |||
| Amount: | ` 1,44,609 | 7,23,045 | 14,46,090 |
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| Principal amount: | |||
| Rate of Interest: | |||
| Tenure: | 8yrs | 8yrs | |
| Amount: | ` 1,80,431 | 9,02,158 | 18,04,317 |
Note: USE Compound calculator, and FD Calculator
Senior Citizen Saving Scheme vs Fixed Deposit
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| Features | SCSS | FD |
| Interest Rate | 7.4% (April-June) | 6.5%-8.45% (For Senior Citizens) |
| Lock in & Maturity | 5 Year | 5 Year |
| 80C Applicable | Yes | Yes |
| returns /interest taxable
(10K per year) |
yes | yes |
| Premature Withdrawal | penalty 1.5% | penalty as per bank |
Why investing in SCSS is Better than FD?
under SCSS scheme qualifies for the benefit of Section 80C. Read more Fixed deposit 80C.
Tax saver FD min 5 years lockin.
SCSS interest rates reviews and changes quarterly as per economy.
Important rules about SCSS
if the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.