How to Open a Senior Citizen Savings Scheme Account?
An Senior Citizen Savings Scheme account may be opened at a bank as well as at a post office across India. An SCSS account is mandatory for those who are willing to avail themselves of these benefits. A senior citizen must invest in retirement plans and open a Senior Citizen Savings Scheme account. You must submit a document of KYC and include proofs such as identity and address.
- On the top left corner of the form, write the name of the Post Office branch
- Enter the account number if you already have a Post Office savings account
- Fill in the Post Office branch address in the 'To' field
- Copy and paste the account holder's photo
- Fill in the account holder's name in the first blank space and select the 'SCSS' option from the drop-down menu
- You do not need to choose any of the 'Additional Facilities Available' sections because they are only relevant if you apply for a savings account
- Choose an account holder type, such as self, minor with a guardian, or a person of unsound mind with guardian
- Choose between single, either or survivor, or all or survivor accounts
- Enter the deposit value in numbers and then in words. In case of a cheque, write down the cheque number
- Write down the details of the account holder
- Provide document proof and tick those cells that represent your documents
- You must sign the papers at the end of each page
- Choose a nominee and fill in the details of that nominee
You can also open a Senior Citizen Savings Scheme account by visiting a bank.
- Visit your nearest bank
- Request and fill up the application form for Senior Citizen Savings Scheme
- Submit the form and the required documents (KYC, address, and identity proofs) to the bank employee
- The Senior Citizen Savings Scheme is activated after the bank has processed your application and payment
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Who can Invest in the Senior Citizen Savings Scheme?
Investors can make deposits in a lump sum ranging between 1000 rupees to 15 lakh rupees or the amount that has been received on retirement. It is preferable to make deposits as cheque if the limit exceeds 1 lakh rupees. You can invest in a Senior Citizen Savings Scheme, if you are:
- Indian Senior citizens aged 60 and above
- Citizens in the 55-60 year age group have opted for the Voluntary Retirement Scheme (VRS) or superannuation
- Retired Hindu Undivided Family and Non-Resident Indians are not allowed to invest in this scheme
- Retired military personnel between the ages of 50 to 60
- The investment must be made within a month of receiving retirement benefits
Also Read about - Saving Schemes
What is the Maturity Period of the Senior Citizen Savings Scheme?
A Senior Citizen Savings Scheme matures in 5 years from its activation. However, the account holder has an option to extend the account for up to 3 years. To do so, they must submit a request within one year after the account matures.
If you choose to prematurely close your SCSS account, penalties will apply based on the timing of the withdrawal:
- If closed within 2 years of the date of opening: A penalty of 1.5% of the deposit amount is deducted
- If closed after 2 years but before 5 years: A penalty of 1% of the deposit amount is deducted
The account will be closed if the primary account holder dies before the account's actual maturity date, and any maturity proceeds will be handed to the legal heir/nominee. For deceased claims, the nominee or legal heir must submit a formal application in the prescribed format, along with a copy of the death certificate, for the account to be closed.
