The Post Office Senior Citizens Savings Scheme (SCSS) is an investment option for individuals over 60 years . Since it is a government-backed scheme, the risk involved is minimal, and the returns are higher.


After the Budget 2023 revision, the maximum investment amount has been increased to ₹30 Lakhs from ₹15 Lakhs. You can invest a lump sum and earn guaranteed returns at maturity. This secure investment avenue not only lets you enjoy the benefits of regular income but also offers tax benefits.

Features of Post Office SCSS

The Union Government launched the Senior Citizen Savings Scheme to cater to your post-retirement needs. Check the features of the Post Office's monthly income scheme for senior citizens below:




5 years 

Interest Rate

8.2% p.a.

Minimum Investment


Maximum Investment

₹30 Lakhs

Interest Payouts

Payable at the beginning of each quarter on April 1, July 1, October 1, and January 1

Note: The Union Government revises the interest rate every quarter. Check the latest interest rates before investing in this scheme.

Benefits of Post Office SCSS

The Senior Citizens Savings Scheme 2019 governs the SCSS Post Office plan. Here are some of the notable characteristics of this scheme: 

1. Maturity Period

The Post Office Senior Citizens Savings Scheme has a fixed tenor of 5 years, which can be extended by 3 years with a prescribed form. You must submit the application form at the respective post office with the passbook. 

2. Premature Closure

You can close the SCSS account at any point in time after opening. However, it will attract a penalty. The amount of penalty varies depending on when you close the account. Here are the details:

  • If you close an account before the completion of 1 year, you will receive no interest
  • Authorities will recover the interest from the investment amount in case interest is already paid out

  • If you close an account between the 1st and 2nd year, a penalty of 1.5% will be levied on the investment amount

  • If you close an account between the 2nd and 5th year, the investment amount will attract a penalty of 1%.

3. Tax Benefits

The SCSS scheme in the Post Office offers tax deductions of up to ₹1.5 Lakhs per financial year. This deduction is available under Section 80C of the Income Tax Act, 1961.

4. Multiple Accounts

You can open several accounts, both individually and jointly with another person. However, the collective investment in all the accounts must not exceed ₹30 Lakhs.

Eligibility Criteria and Documents Required

To invest in this savings scheme, you must meet certain requirements:

  • You must be over 60 years of age

  • You must be a retired civilian employee aged over 55 years and invest within 1 month of receiving retirement benefits

  • You must be a retired defence employee aged over 50 years and invest within 1 month of receiving retirement benefits


You will be required to submit the following documents when opening a SCSS account:   

  • A duly filled and signed account opening form

  • A duly filled and signed Know Your Customer (KYC) form

  • A copy of your PAN 

  • A copy of your Aadhaar card

  • A copy of your address proof

  • Latest passport-size photograph

  • A copy of the document confirming the disbursal date of your retirement benefits

  • A copy of your employer’s certificate mentioning your retirement, VRS or superannuation

Process for Opening Post Office SCSS

Investing in the Post Office Senior Citizen Savings Scheme is quite simple. Here are some steps you may be required to follow when investing in this scheme: 

  1. Visit a post office near you and request for the SCSS application form or download it from the official India Post website

  2. Fill in the account opening form with all the required information, including the nominee’s details 

  3. Submit the required documents along with the application form and your original ID for verification 

  4. Get the signature of a witness to complete the process


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be a source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes, etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and the User should exercise due care prior to taking any decision, on the basis of the information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, trade names, logos and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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Frequently Asked Questions

What is the age criterion for SCSS?

You can open an SCSS account at a post office if you are above 60 years old. If you are a retired civilian or defence employee, you can also open this account if you are over 55 and 50 years, respectively.

How to invest in the Post Office Senior Citizens Savings Scheme?

You have to invest in the SCSS account at the time of opening the account via a cheque or a demand draft.

What is the nomination facility for the Post Office Senior Citizens Savings Scheme Account?

You can nominate an individual when opening the SCSS account or at any point after the account opening by submitting Form C.

What is Post Office SCSS premature closure?

You can close your Post Office Senior Citizen Savings Scheme account at any time after the date of opening. However, you may incur a penalty for premature closure, depending on when you close the account.

What is the interest rate on the Post Office Senior Citizen Scheme?

The Union Government reviews the rate of interest applicable to this scheme every quarter. Currently, the interest rate for the scheme is 8.2% p.a. for the April-June 2024 quarter.

Is Section 80C of the Income Tax Act applicable to the SCSS?

Yes. You can claim a deduction of up to ₹1.5 Lakhs on your SCSS investment under Section 80C of the Income Tax Act, 1961.

Is it possible to extend the tenor of the SCSS account?

Yes. You can extend the tenor of your Post Office Senior Citizens Savings Scheme account for 3 years. You must apply for an extension within a year from the date of maturity.

How many accounts can a senior citizen open under SCSS?

You can open multiple accounts if you do not exceed the cumulative threshold limit of ₹30 Lakhs.

Which is the best scheme for senior citizens in a post office?

There are multiple post office schemes for senior citizens, such as SCSS, Kisan Vikas Patra (KVP), and National Savings Certificate (NSC). If you wish to enjoy the benefits of FD rates in the Post Office for senior citizens, you can also consider investing in these savings instruments as well.

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