Recently, the revamped Senior Citizen Savings Scheme (SCSS) has seen a remarkable surge in collections, with a staggering 176% increase compared to the previous year. The collections for the first quarter of the current financial year reached an impressive Rs 55,000 crore. This surge demonstrates the growing popularity and effectiveness of the SCSS in providing senior citizens in India with a regular income after the age of 60.
About Senior Citizen Savings Scheme (SCSS):
The Senior Citizen Savings Scheme (SCSS) was introduced with the primary objective of offering senior citizens in India a consistent income stream after they reach the age of 60. It is an attractive savings option that provides financial security to elderly individuals during their retirement years.
Eligibility Criteria:
The SCSS is open to Indian citizens who are above 60 years of age. Additionally, retirees in the age bracket of 55-60 years who have opted for the Voluntary Retirement Scheme (VRS), as well as retired defense personnel above 50 years and below 60 years of age, are also eligible to apply for the scheme. These eligibility criteria ensure that a wide range of individuals can benefit from the scheme and secure their financial future.
Key Features:
- Maturity Period and Extension: The SCSS has a maturity period of five years, ensuring that individuals have a consistent income stream throughout this period. However, depositors have the option to extend their maturity period for an additional three years, providing them with further flexibility and financial stability.
- Multiple and Joint Account Options: Individuals are allowed to operate more than one SCSS account by themselves. Additionally, they have the option to open a joint account with their spouse, making it a convenient choice for couples looking to secure their financial well-being together.
- Deposit Limits: Eligible investors can make a lump sum deposit into the SCSS. The minimum deposit amount is set at Rs. 1,000 and subsequent deposits must be made in multiples thereof. On the other hand, the maximum deposit limit is Rs. 30 lakh, providing individuals with the freedom to invest as per their financial capabilities.
- Quarterly Interest Payments: One of the notable features of the SCSS is the periodic interest payments. The interest amount is paid to the account holders on a quarterly basis, ensuring a regular income stream to cover their financial needs and expenses.
- Premature Withdrawal: In the event of unforeseen circumstances or urgent financial requirements, the SCSS allows for premature withdrawal. Account holders can make a premature withdrawal after one year of opening the account, subject to certain conditions and penalties as per the rules of the scheme.