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Best Investment Options for the Retired – Senior Citizen Savings Account

Are you a retired person who is always worrying about the monthly expenses? Are you one of them who do not get a pension or it simply is not enough? If the answer to these questions is a ‘yes’ then the Senior Citizen Savings Scheme (SCSS) is what you need. It is the safest way to get a regular source of income with tax benefits.

The benefits of Senior Citizen Savings Scheme

  • Senior Citizen Savings Scheme is sponsored by the Government of India, thereby making it a trustworthy savings scheme
  • The Senior Citizen Savings Scheme account is easy to open. You just have to visit a nearby post office or bank to do so. It is advisable to use the bank where you already have a savings account
  • The scheme allows you to have a nominee for the account. In the event of an untoward incident, the nominee can withdraw the money in your account
  • According to Section 80C of the Income Tax Act, 1961, you can avail of a tax deduction of INR 1.5 lakh
  • The average tenure of this scheme is five years but you can extend it up to  three more years

Things you need to know about Senior Citizen Savings Scheme

You need to know about two important things about the Senior Citizen Savings Scheme before you consider putting your money in it.

Also Read: Quick Guide to SIP or Systematic Investment Plans


The scheme is available for the senior citizens who are above the age of 60-years and 55-60- year-old citizens who have chosen the Voluntary Retirement Scheme. The scheme is also extended to defense personnel who are retired and are more than 50years in age. Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) cannot invest in this scheme.

Investment amount

You cannot invest more than the amount of money you have received in the time of your retirement in the SCSS account. However, that amount too comes with an upper limit, which is INR 15 lakh. For any amount over INR 1 lakh, you have to use a check to invest the money. For an amount less than INR 1 lakh, you can use cash. The current savings account interest rate offered on the scheme is 8.70%.

How to open the SCSS account

You can sign-up for the account from a post office or bank. You have to submit Form A and provide an identity proof. PAN card is accepted. You will also need to provide an address proof such as Aadhar Card. As a proof of age, you can submit a ’birth certificate’, ’voter ID card’, or a ’senior citizen card’. You need to submit two recent passport-sized photographs with the above self-attested documents.

Also Read: Top 6 Tax-saving Investments for 2019-2020

If you are looking for a worthwhile investment option, which offers a regular flow of income along with tax benefits after retirement, the Senior Citizen Savings Scheme is an ideal investment option for you.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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