Prologue to Senior Citizen Saving Scheme (SCSS) | Motilal Oswal

Introduction to Senior Citizen Saving Scheme

When it comes to investment options, the choices that you have are aplenty. However, most of them fall under the high-risk, high reward category or low-risk, low reward category. Finding the perfect balance between risk and reward is not as easy as it may seem. And in the case of senior citizens, the job is increasingly harder. 

That said, if you’re an Indian citizen aged above 60 years, you’re in luck. The Senior Citizen Saving Scheme (SCSS) is designed to offer you just that - a low-risk investment option with stable return generation potential. Continue reading to find out more about the SCSS scheme. 

  • What is the Senior Citizen Saving Scheme?   

Introduced in the year 2004, the Senior Citizen Saving Scheme is a government-backed savings scheme designed to cater to individuals above 60 years of age. It gives senior citizens the ability to enjoy stable returns with absolutely zero risk involved. The SCSS scheme is offered through Post Offices across the country.

The SCSS scheme is a fixed-income scheme and the rate of interest applicable on deposits is notified by the government of India and is revised every three months. Also, the interest accumulated on the deposit is credited to your account on a quarterly basis. The interest rate applicable for the Senior Citizen Savings Scheme for the third quarter of the year 2021 - 2022 is at 7.4%. 

  • Is there any deposit limit for the Senior Citizen Saving Scheme

Yes. The SCSS scheme has a minimum and maximum deposit limit. The minimum amount that you can deposit under this scheme is Rs. 1,000, whereas the maximum amount that you can deposit is Rs. 15 lakhs. 

If you’re depositing in cash, you can do so up to Rs. 1 lakh. For deposit amounts larger than Rs. 1 lakh, you can only do it through cash or demand draft.  

  • Who can avail the Senior Citizen Saving Scheme

According to the rules laid out under the SCSS scheme, the following individuals are free to avail the scheme. 

  1. Resident individual who is a citizen of India and is aged 60 years or above.
  2. Individuals who have opted for Superannuation or the Voluntary Retirement Scheme (VRS) and are aged between 55-60 years, provided they apply for the scheme within a month of retirement. 
  3. Retired defense personnel aged 50 years or above.  


Since the SCSS scheme is a government run scheme, it comes with zero default risk. Also, it offers an attractive interest rate that’s far higher than what banks offer on their fixed deposits. However, opening a Senior Citizen Saving Scheme can only be done offline by physically visiting a Post Office branch. 

Alternatively, if you’re interested in investment options with higher returns than the SCSS scheme, you could always get into stock market trading. Although the risk is higher, the returns also tend to outperform traditional investment options. If you wish to open a trading and demat account, get in touch with Motilal Oswal right away. 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account

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