Senior citizens saving scheme

• The collections under the revamped Senior Citizen Savings Scheme (SCSS) jumped 176% on year to Rs 55,000 crore in the first quarter of the current financial year.
• The SCSS has added 6,52,000 new accounts in the first three months of FY24.

ABOUT SENIOR CITIZEN SAVINGS SCHEME (SCSS)

• SCSS was launched with the main aim of providing senior citizens in India a regular income after they attain the age of 60 years old.
• Eligibility
  • Indian citizens above the age of 60 years.
  • Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation.
  • Retired defence personnel above 50 years and below 60 years of age.
• Tenure- It has a maturity period of 5 years.
  • But, a depositor can extend one’s maturity period for another 3 years.
• Premature withdrawal is allowed after 1 year of opening the account.
• Individuals are allowed to operate more than one account by themselves or open a joint account with their spouse.
• Deposit Limits
  • Minimum Deposit– 1,000 (and in multiples thereof)
  • Maximum Deposit– 30 Lakh (doubled in Budget for FY24 from 15 lakh)
• Under SCSS, the interest amount is paid to the account holders quarterly.
• Deposits in SCSS qualify for deduction under the section 80-C of Income Tax Act.