If we ask you what your retirement plans are, we bet you would have a list as long as your kitchen rolls. Some of you might want to leave the cosmopolitan lives and nestle in the tranquility of bewitching mountains, and the others would simply want to Netflix and chill (That’s what at least the millennials and gen z would reply).
In a nutshell, we all have our retirement dreams. If our mundane 9 to 5 life didn’t give us peace, that’s what we wish for our retirement lives to be like on the wishing wells.
However, as much as it is comforting to dream of a retirement life, it is equally stressful to think about the finances. Retirement would also imply a stop to our income. How then would we manage to live the post-retirement life we dreamed of?
Scary, isn’t it? Indeed, it is. But it’s not something that you have to be anxious about every minute of the day – especially when you invest in retirement plans like the Senior Citizen Saving Scheme.
We’ll tell you what is Senior Citizens Savings Scheme, the features and advantages, how to calculate returns, and a lot more. So, get your cup of tea, sit back and read along.
What is a Senior Citizen Saving Scheme?
To answer what is Senior Citizens Savings Scheme, it was introduced with the objective of providing senior citizens with a steady income after reaching the age of 60 years.
The scheme comes packed with various security features, providing senior citizens with a savings option for the long run. The scheme is available for subscription at post offices and certified banks across the country.
How SCSS works?
The Senior Citizen Saving Scheme works by making a lump-sum deposit into the SCSS account. The senior citizen fixed deposit is subject to retirement benefits that can be availed once the individual reaches the retirement age. The retirement benefit includes any sum or payment that is due to the account holder. It can include retirement gratuity, provident fund dues, commuted pension value, leave encashment, savings element of Group Savings Linked Insurance Scheme as payable by the employer upon retirement, retirement-cum-withdrawal benefit as applicable under the Employees’ Family Pension Scheme and ex-gratia payments as under a voluntary or a special voluntary retirement scheme.
That’s not it. Like any other saving or investment scheme, the Senior Citizen Saving Scheme also gives the benefit of the interest, which is payable every quarter.
Senior Citizen Saving Scheme Features
The Senior Citizen Saving Scheme is a saving scheme having a box full of features. Now that we have the answer to what is Senior Citizens Savings Scheme, let’s flip the pages to know the features: 
The Senior Citizen Saving Scheme has a maturity of 5 years. However, subscribers of the scheme have the option to extend the maturity duration for 3 within one year of maturity.
2. Facility to Open to Joint Account:
An individual is allowed to operate an individual account or set up a joint account with their spouse. However, joint accounts can be set up only with the spouse and the initial depositor shall be deemed as the investor of the joint account.
3. Minimum Deposit and Maximum Deposit:
The Scheme invites a minimum senior citizen fixed deposit of INR 1000, and a maximum senior citizen fixed deposit of INR 15 lakhs.
4. Premature Withdrawal:
Even though Senior Citizen Saving Scheme has a lock-in period of 5 years, premature withdrawals are allowed under certain circumstances. However, it shall be noted that premature withdrawals are only allowed after one year of opening up the Senior Citizen Saving Scheme account.
Advantages of a Senior Citizen Savings Scheme
Opening a Senior Citizen Savings Scheme account to meet your retirement goals is definitely a decision you would not regret. Now that we know what is Senior Citizen Saving Scheme, let’s spill the beans on the advantages:
1. Helps Build Retirement Corpus:
The Senior Citizen Savings Scheme was introduced to aid an individual’s effort of building a financial corpus they could lean on. That said, the scheme helps build a retirement corpus by encouraging subscribers to make a minimum senior citizen fixed deposit every year and reap the benefit of added interest to multiply their wealth.
2. Tax Benefits:
Senior Citizen Saving Scheme is eligible for tax benefits under Section 80C of the Income Tax Act. A subscriber may enjoy a tax deduction of up to INR 1,50,000 under this Scheme. 
3. Investment Safety:
If you’re one of those folks who worry day and night about investment risks, the Senior Citizen Saving Scheme is the saving scheme you can lean on. As it is a government-introduced scheme that offers guaranteed returns in terms of fixed interest rates, it’s a great option for those who desire investment security.
4. Quarterly Interest Payouts:
Interest on investment is like the salary credit message that makes us happy. That said, the Senior Citizen Saving Scheme is one scheme that pays out interest quarterly, on the first day of April, July, October and January. 
- The senior Citizen Saving Scheme was introduced with the goal of providing senior citizens with a steady flow of income after retirement.
- The scheme works by making lump-sum senior citizen fixed deposit
- The scheme earns a rate of interest of 7.4% p.a. (As of March 2022)
- Interest on senior citizen fixed deposit is paid every quarter.
- Senior Citizen Saving Scheme is subject to tax benefits under Section 80C
Who Should Invest in a Senior Citizen Saving Scheme?
After answering what is Senior Citizens Savings Scheme, let’s discuss who should invest in it.
Any citizen who wishes to build a retirement fund can invest in a Senior Citizen Saving Scheme, given that they meet the following eligibility conditions:
- An individual aged 60 or above.
- An individual who is between the age of 55 and 60, and has retired under VRS, special VRS or Superannuation.
What is an SCSS account?
A Senior Citizens’ Saving Scheme (SCSS) account offers retirement benefits supported by the Government of India. Every senior citizen of India can make use of the benefits by investing a capital in the scheme, with either a single account or a joint one. This account will give access to a systematic and structured income post-retirement lined up with income tax welfare benefits.
This account can be created at any bank or post office. Senior Citizen Saving Scheme allows the setting up of a joint account, however, only with the spouse. Both have a 5-year maturity period that can be prolonged up to an additional 8-year period. The scheme allows you to have a number of accounts where the total amount of deposits in all SCSS accounts, must not be exceeded more than the maximum limit.
How to Open an SCSS Account Online?
Online application facility is not available for the SCSS account yet. In order to open a SCSS account, the individual must visit the bank branch or post office and fill up the associated form. The same form should be put together with KYC documents, age, ID, Address proof and cheque for deposit amount.
Documents Required to Open SCSS Account
Whether an individual applies for SCSS through post offices or public & private banks, the terms and conditions of the account remain the same. An account can get moved from one post office to another.
- Form A to be filled for opening an SCSS account.
- Identity proof like PAN card or Passport.
- Aadhar card is compulsory.
- Address proof like Telephone bill or Driver’s License.
- A document stating clear proof of age.
- 2 Passport size photographs.
How to Calculate the Returns from the Investment? (talk about SCSS calculator, interest rate)
Now that we are aware of what is Senior Citizen Saving Scheme, and the number of features and benefits it carries, we might as well know how to calculate the returns on the scheme.
If maintaining a strong financial position is your dream, financial planning is the big cheese. That said, if you are planning to invest in Senior Citizen Saving Scheme, then calculating the return on investment carries a lot of weight.
There are two ways of calculating returns on investment under the Senior Citizen Saving Scheme:
1. Calculating it Manually Through Interest Rate
If mathematics has been your strong suit, you may find the manual calculation of interest hassle-free. Let’s understand how return on investment can be calculated manually.
Before we do, it’s important to note that the interest rate under Senior Citizen Saving Scheme is 7.4% as of March 2022. 
Let’s say you make an investment of INR 1,00,000 in 5 years. As the interest earned in a financial year is 7.4%, the return would be INR 3,70,000. As the interest is credited quarterly, the interest receivable every quarter would be INR 18,500.
2. Calculating Return on Investment through SCSS calculator
If you’re someone who has always been terrible at mathematics or someone who would get scared of seeing digitals and formulas, an SCSS calculator can be a godsend for you.
There are many SCSS calculators available online. Simply enter the invested amount, and the calculator would do the job for you.
Tax Benefits Under the SCSS
Section 80C permits for a abstraction for investments made in the SCSS account. If total interest in all SCSS accounts, exceeds Rs.50,000, in a financial year, interest will become taxable, and TDS at the ordinance rate is discounted from the total interest paid. But this the case with only citizens above the age of 60.
This tax benefit, however, is restricted to the present annual limit of Rs. 1.5 lakh for all investments made under section 80C. If form 15G/15H is filled up and filed, no TDS will be subtracted.
When you leave behind the hectic 9 to 5 lifestyle and enter your retirement phase, you know it’s the time to enjoy and relax like never before. Do not let your financial woes stop you from living the retirement life as planned. As mentioned, investing in Senior Citizen Saving Scheme is the way to preserve your retirement life financially.
Now that you know what is Senior Citizen Saving Scheme, how it works, and the features and benefits it provides, you are all set to invest in the scheme to aid your retirement. Have a happy retirement life well in advance!
No, Non-Resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to invest in Senior Citizen Saving Scheme.
Yes, nominations can be made under Senior Citizen Saving Scheme before investing in Senior Citizen Saving Scheme.
Yes, it is possible to open multiple accounts under Senior Citizen Saving Scheme. A retired person set up more than one account after receiving the retirement benefits, given that the account is set up within one month of receiving the benefit.
Yes, TDS is applicable for the Senior Citizen Saving Scheme as interest payments are not exempted from tax deduction at the source.
The minimum senior citizen fixed deposit is INR 1000.
A joint account can be opened along with spouses only.
Senior Citizen Savings Scheme (SCSS).
With high-interest rate of 7.4% per annum, SCSS is the most beneficial investment option, compared to FD.
There is only one investment permissible for every SSCS account. The amount needs to be a multiple of Rs. 1000 and not exceed the stated limit.
Also Read: Post Office Savings Schemes