Post Office Senior Citizen Scheme

Post Office Senior Citizen Scheme, Eligibility, Features, Benefits, and Interest Rates

Post Office Senior Citizen Scheme:- Any post office in India can open an account for retirees under the post office Senior Citizen Saving Scheme (SCSS), which provides them with the chance to invest at competitive interest rates. Seniors who invest a lump sum in the plan will receive tax-advantaged quarterly returns. With its unrivaled security, appealing features, and reliable long-term income stream, the scheme is a great option for investors over 60. This blog delves deeply into the features, benefits, and application process of the Post Office Senior Citizen Savings Scheme.


What is the Post Office Senior Citizen Savings Scheme?

The Indian government supports a fixed deposit retirement benefit program called Senior Citizens Savings Schemes (SCSS). Seniors who are 60 years of age or older can contribute a lump sum, either alone or jointly, to this program to receive regular income and tax benefits.

Any post office in India can open a SCSS account for senior citizens. To open a SCSS account, go to the post office branch that is closest to you and where you currently have a savings account. It is necessary that you review the features, requirements for eligibility, and interest rates prior to applying for the post office’s SCSS.

Post Office Senior Citizen Scheme

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Key Features of the Post Office Senior Citizen Scheme

The salient features of the SCSS are:

Maturity Period

Five years after the account’s opening date is the maturity period for SCSS accounts. You must bring your passbook and an application to the relevant post office in order to close an account. Should the account holder pass away, the account will continue to accrue interest at the post office savings account rate as of the passing date. If your spouse is qualified to open a SCSS account, they may keep the account until it matures.

Deposit Limit

The SCSS account requires a minimum deposit of Rs. 1000. The remaining sum, up to a maximum of Rs. 15 lakhs, must be expressed in multiples of Rs. 1000. It is possible to open more than one SCSS account at once, but the total amount of all of them cannot exceed Rs. 15 lakhs. Interest will only be applied from the date of deposit to the date of refund if there is an excess amount deposited in the SCSS account. The depositor will receive an instant refund in this case.

Premature Closure

It is possible to end the plan early. For premature SCSS post office account closure, there are, nevertheless, specific guidelines in place. Interest will only be charged if there is an excess amount deposited in the SCSS account between the date of the deposit and the date of the refund. For example, the depositor will immediately receive their money back.

Should the account be closed within the first two years, 1.5% of the initial deposit will be subtracted. If you decide to close the account within the next two to five years, 1% of the amount deposited will be withheld. If you apply within the first year of maturity, you can extend your SCSS account for an additional three years.

Tax Benefits

Under Section 80 C of the Income Tax Act of India, the depositor to the post office senior citizen scheme may be eligible to receive tax benefits for the amount deposited.

Multiple Accounts

A person can open and manage one or more accounts, either in their own name or jointly with their spouse, by enrolling in the post office SCSS. However, the investor in the account is the first depositor, and the spouse must be present to open the joint account.

Nomination Facility

When opening an account, the investor can complete a nomination form as part of the scheme. The depositor need only complete an application in order to nominate any individual.


It is easy and quick to transfer a post office SCSS account to a bank, from one post office to another, or from one post office to another.

Interest Rates

For post office SCSS, the current interest rate is 7.6% annually. Every quarter, specifically on March 31st, September 30th, and December 31st in the first instance, the post office interest for the senior citizens savings scheme is payable. If the total amount in all post office SCSS accounts in a given year exceeds Rs.50,000, the interest income is subject to taxation.

Post Office Senior Citizen Scheme

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Eligibility Criteria

Those who are sixty years of age or older can invest in the Post Office SCSS. This program is also open to investments from civil servants who are under 60 years old and have reached voluntary retirement or superannuation at the age of 55. Additionally, retired defense workers who are at least 50 but under 60 may invest in this scheme. The two exception cases require investments to be made within a month of receiving retirement benefits.

You can open the SCSS account alone or in partnership with your spouse. The first account holder will receive the full deposit amount of the joint account.

Benefits of the Post Office Senior Citizen Scheme 

The establishment of a post office senior citizen program has various advantages.

Tax Benefit

For the money deposited through this scheme, you are eligible to receive an income tax deduction of up to Rs. 1.5 lakhs under Section 80C.

High Interest

With a 7.6% interest rate, post office SCSS is among the greatest investment choices for seniors when compared to FDs or savings accounts. p.a.

Simple Process

It’s easy to start a SCSS account at any post office in India, and it only takes a few minutes.

Quarterly Payout

Investors in SCSS are guaranteed regular payments because the interest amount is paid on a quarterly basis.


One of the safest and most dependable investment options with guaranteed returns is the government-backed savings scheme.


Since the five-year account tenure can be extended for an additional three years, a post office SCSS is flexible.

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How to Open an Account?

To open a post office savings account for senior citizens at the post office nearest you, follow the steps listed below:

  • Apply for the post office’s senior citizens savings plan at any branch, or get it online at the official post office website.
  • Provide accurate information on the application form, including the nominee’s details.
  • Send in the required paperwork, which should include two recent passport photos and proof of identity, address, and age (such as an Aadhar card).
  • PAN card
  • Send in a completed KYC form.
  • Send in an employer certificate and details about retirement benefits.
  • To finish the post office SCSS application, get a witness to sign it.

You must request the automatic transfer of SCSS account interest to the RD account via the depositor’s post office savings account and have a savings bank account in order to automate the scheme.

Post Office Senior Citizen Scheme

Steps to Fill the Post Office Senior Citizens Savings Application

  • On the upper left corner of the form, enter the post office branch name.
  • If you already have a post office savings account, enter your account number.
  • In the “To” field, enter the post office branch address.
  • Paste the candidate’s photo in there.
  • In the empty space, type the applicant’s name and select the SCSS option.
  • Select the type of account holder after that, such as self or minor with the guardian, etc.
  • Next, select the account type (survivor or single).
  • After that, proceed to the next field and enter the deposit amount in both words and numbers. Put the cheque number and date on the cheque if you are paying with a cheque.
  • Enter the applicant’s personal information next.
  • Now, tick the boxes next to each supporting document you sent with the form.
  • The account holders must sign the form at the conclusion.
  • Include the applicant’s signatures as well as the nominee’s name and selected details.


Q. What is the age limit for the post office SCSS scheme?

Ans- To be eligible to participate in the Post Office SCSS program, an applicant must be older than sixty. Making investments within a month of receiving retirement benefits is mandatory for the two exception cases.

Q. What does the premature closure of the post office SCSS mean?

Ans- The person can close the account earlier thanks to the SCSS scheme. You won’t be charged interest if you finish it within a year. An amount equal to 1.5% will be deducted if the funds are withdrawn within a year, and 1% will be deducted if the account is closed within two years.


Because of its strong government support, security, dependability, simplicity of use, and substantial returns, the post office senior citizen scheme is the best choice for senior citizens in India looking to invest.

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