Definition
Senior Citizen Savings Scheme (SCSS)
SCSS is a government savings scheme for people aged 60 and above, offering attractive, regular interest income with sovereign safety.
The Senior Citizen Savings Scheme (SCSS) is a low-risk, government-backed scheme for retirees aged 60+ (with relaxations for certain early retirees), available at banks and post offices. It pays quarterly interest at a rate set by the government, usually higher than bank FDs, making it popular for retirement income.
It has a defined tenure (extendable), a maximum investment limit per individual, and the deposit qualifies for Section 80C deduction. The interest is fully taxable, but seniors can use Section 80TTB and Form 15H to manage tax and TDS.
SCSS offers a strong combination of safety and regular income, making it a cornerstone of many retirees' portfolios alongside the Post Office Monthly Income Scheme and annuities.
Related terms
- Section 80TTBSection 80TTB gives senior citizens a larger deduction on interest income from deposits with banks, co-operative banks and the post office.
- Post Office Monthly Income Scheme (POMIS)POMIS is a post office scheme that pays a fixed monthly interest income on a lump-sum deposit, with capital protection.
- AnnuityAn annuity is a financial product that pays a regular income stream, typically for life, in exchange for a lump sum — used mainly to secure income in retirement.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.