Post Office Senior Citizen Savings Scheme (SCSS)

The Post Office Senior Citizen Savings Scheme (SCSS) offers safe, high-interest earnings for senior citizens, providing financial security post-retirement with quarterly interest payouts and tax-saving benefits under Section 80C.

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Key Highlights

✅ 8.2% per annum interest, paid quarterly
✅ Investment in multiples of ₹1000 up to ₹30 lakh
✅ Safe, government-backed investment
✅ Tax benefits under Section 80C
✅ Ideal for retirees seeking stable income

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Latest Interest Rate (From 01 Jan 2024)

• 8.2% per annum, payable quarterly.

Interest is payable from the date of deposit to the next quarter-end (31 March, 30 June, 30 September, 31 December) and on the first day of each subsequent quarter.

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Salient Features

(a) Who Can Open:

• Individuals aged 60 years and above
• Retired Civilian Employees (55–60 years), within 1 month of receiving retirement benefits
• Retired Defense Employees (50–60 years), within 1 month of receiving retirement benefits
• Accounts can be opened individually or jointly with a spouse (full deposit attributed to the first holder)

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(b) Deposit:

• Minimum: ₹1000; in multiples of ₹1000
• Maximum: ₹30 lakh in all SCSS accounts held by an individual
• Excess deposits will be refunded, and PO Savings Account interest will apply from the date of excess deposit to the date of refund
• Eligible for Section 80C tax benefits

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(c) Interest:

• Payable quarterly: 1 April, 1 July, 1 October, 1 January
• Unclaimed interest does not earn additional interest
• Can be credited automatically to a Post Office Savings Account or via ECS
• Interest is taxable:
  • TDS applies if total interest across SCSS accounts exceeds ₹50,000 in a financial year
  • Submit Form 15G/15H to avoid TDS if within the limit

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(d) Premature Closure:

• Allowed anytime after opening
• If closed before 1 year:
  • No interest payable; paid interest recovered from principal
• If closed after 1 year but before 2 years:
  • 1.5% of principal deducted
• If closed after 2 years but before 5 years:
  • 1% of principal deducted
• Extended accounts can be closed after 1 year from extension without deductions

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(e) Maturity and Closure:

• The account matures after 5 years from the date of opening
• On the depositor’s death:
  • The account earns PO Savings Account interest from the date of death
  • If the spouse is a joint holder/nominee and eligible, the account can continue until maturity without interruption

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(f) Extension of Account:

• Extendable for 3 years after maturity
• Extension request to be submitted within 1 year from maturity
• Extended accounts earn interest at the rate applicable on the maturity date

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Why Choose Post Office SCSS?

✅ Secure high-interest returns for retirees
✅ Quarterly payouts for regular income
✅ Capital safety with government backing
✅ Tax-saving benefits under Section 80C
✅ Simple management at your nearest Post Office

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The Post Office Senior Citizen Savings Scheme is a reliable option for senior citizens and retirees to secure steady, high-interest income while preserving their capital safely. Start your investment in SCSS today to ensure a stress-free retirement with financial stability.

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