Senior Citizens' Savings Scheme: Age limit, eligibility, ₹30 lakh investment cap and other rules

New Delhi: Elderlies often invest for their retirement to ensure financial security once they exit the age of earning. These retirement funds may act as a source of regular income if put into an appropriate savings instrument.

One such option is the Senior Citizens' Savings Scheme (SCSS), which caters to the needs of regular income for the elderly. When a retiree deposits an amount into the account, it earns interest, which is payable quarterly.

What is the SCSS scheme?

It is a government-backed small savings scheme for senior citizens and retirees. They can invest their retirement funds to get a regular income in the form of interest earned on the retirement deposit.

People get interest quarterly on the lump sum deposited in the account, which matures in five years. Eligible elderly people can avail themselves of the service through authorised banks and post offices. Moreover, the duration of the investment can be extended for a period of three years, subject to applicable rules.

For the third quarter of 2026, that is, October to December, SCSS offers an interest rate of 8.2 per cent.

Who can open an account?

Though the name of the scheme suggests that it is exclusively for senior citizens or people aged 60 years and above, it is open to certain other individuals as well.

Civilians aged 55 years or more but less than 60 years who have retired can invest in the scheme, subject to eligibility conditions.

Those who have retired under superannuation, voluntary retirement or special voluntary rules and retirements are eligible to invest their funds in SCSS within a period of one month of receiving retirement benefits. Also, the lump sum deposited cannot exceed the amount of benefits received at retirement or Rs 30 lakh, whichever is less.

Defence personnel can enrol in the scheme from the age of 50 years, subject to the prescribed conditions.

Those who have attained 60 years of age can invest in SCSS, irrespective of whether they are working or have already retired.

Salient features

The account can be opened with a minimum deposit of Rs 1,000.

A person may choose to open multiple accounts under the scheme, provided that the total amount across all accounts does not exceed Rs 30 lakh.

The account can be opened individually or jointly with a spouse.