All You Need to Know About Senior Citizens Savings Scheme

Senior Citizens have always been a pride of our country. Senior citizens have always set an example for their next generations to follow. It therefore becomes a duty on behalf of the family of these senior citizens, to take care of them, through schemes which are long lasting and beneficial to them. The Government on its part has been coming out with constructive programs for the benefit of senior citizens. The Senior Citizens Savings Scheme is one such prestigious program.

The Senior citizens savings scheme is generally deigned for citizens above 60 years of age. The Saving Schemes for senior citizens in India are effective, long term saving options and offer unmatched security and feature that are usually associated with any government sponsored savings program. These schemes are available through certified banks as well as the network post offices spread across India.

SBI is one of the premier banks which offers Senior Citizen’s Savings scheme; Citizens can visit the corporate website of SBI to get more information;

Currently, under the Pradhan Mantri Vaya Vandana Yojana, LIC offers a selection of pension plans which cater to the insurance needs. For senior citizens, the insurer offers one unique pension plan by the name of Pradhan Mantri Vaya Vandana Yojana. This plan was announced by the Indian government on 4 May 2017 for all citizens who are above the age of 60 years, or senior citizens. LIC is the only insurer in India with the licence to operate and offer this scheme. Interested customers can purchase this scheme online, and offline.


A lucrative, savings oriented investment option, the Senior Citizens Savings Schemes interest rate is set at 8.6% per annum. The Senior Citizens Savings scheme is the best option instead of risky propositions like mutual funds. The Senior Citizens Savings Schemes offer the Indian senior population the option to invest in a safe, high yielding and popular savings portfolio.

The Senior Citizen Saving Scheme interest calculator is a user friendly tool. This tool allows you to calculate the total interest that is generated on your deposit in the savings scheme. Visit the Senior Citizens Savings scheme interest calculator online. You can visit the corporate visit of any bank which extends Senior Citizens Savings Schemes to know more. For our readers benefit , the Senior Citizen Saving Scheme calculator has all the twelve months given out separately with a box next to each of them. All you need to do is put in the minimum balance in your account in these boxes. Make sure that you add the amount that is available after the 10th of every month. Then you have to press the ‘calculate’ button to know the total interest. The ‘reset’ button allows you to start from the beginning, in case you entered wrong data in any in the boxes.


Senior Citizens Savings Scheme – Frequently Asked Question

What will be the share of the joint account holder in the deposit in an account?

The whole amount is attributed to the first depositor or applicant.

Can both the spouses open separate accounts?

Yes, individual accounts can be opened as well, provided the deposit limit is a maximum of Rs.15 lakh. Of course, it has to adhere to the rules of the scheme.

Any income tax rebate / exemptionsare admissible?

No, the PMUY does not facilitate rebates.

Is TDS applicable to the PMUY scheme?

Yes if the interest exceeds Rs.10,000 per annum, TDS is applicable. In this scheme, interest payments are no exemption to deduction of tax at source.

Any minimum limit has been prescribed for deduction of tax at source?

As per government regulations, tax has to be deducted at source as per the minimum balance.

Can a person holding a Power of Attorney sign for the nominee in the nomination form?

No a person holding a Power of Attorney cannot sign in place for the nominee in the nomination form.

In case of a joint account, if the first holder / depositor expires before maturity, can the account be continued?

Yes, the nominee can hold the account of the expired depositor in case of a death, provided it pertains to the SCSS Rules.

Is there any fee prescribed for nomination and / or change / cancellation of nomination?

No. There is no additional fee charged.

Can an account holder obtain loan by pledging the deposit / account under the SCSS, 2004?

Periodic withdrawals for loans is not possible in this scheme as it defies the very nature of the scheme.

Is premature withdrawal of the deposits from the accounts under the SCSS, 2004 permitted?

Yes, premature withdrawals are allowed, although a premature closure of the savings account is permitted only after a year, whereby the account holder will be charged 1.5% of the savings and 1% after two years.

Are Non-resident Indians, Persons of Indian Origin and Hindu Undivided Family eligible to invest in the 

No, it is not possible, though an Indian moving abroad and having a SCSS can continue to maintain it.

Can an account be transferred from one deposit office to another?

A  Using Form G, an account can be transferred from one deposit office to another.

Can an SCSS account be extended?

Yes, within one year after maturity a depositor can extend their SCSS for a period of three years.

What happens if an account is opened in contravention of the SCSS Rules?

The account will be close, interest deducted and the deposit money returned to the depositor.

Whether commission is payable to the agents under the Scheme?

 Payments of commission under this scheme have been discontinued.