As per Government of India’s notification dated 12.12.2019, this scheme is called as Senior Citizens’ Savings Scheme, 2019.

Salient Features of the Scheme :

Tenure of the Scheme

• 5 years, which can be extended only once for 3 more years.

Rate of interest
As per Government notification
http://www.unionbankofindia.co.in/government-saving-scheme.aspx

Frequency of Computing interest

• Quarterly

Tax aspects

• Interest is fully taxable

Investment to be in multiples of

• Rs.1000/-

Maximum investment limit

• Rs.30 Lakh
• The deposit should be in multiples of Rs.1000/-

Minimum eligible age

• An individual who has attained the age of 60 years on the date of opening of the account (Except NRIs and HUFs)
• 55 years for those who have retired under a voluntary or a special voluntary scheme provided investment is made within 1 month of date of receipt of retirement benefits.
• Retired personnel of Defence Services (excluding Civilian Defence Employees) on attaining the age of 50 years.

Facility of premature withdrawals

• SCSS accounts can be closed any time before maturity subject to the following penalty/deductions:
• If account is closed before expiry of one year from the date of account opening, interest paid on the deposit will be recovered from deposit amount and balance amount paid to the depositor.
• If the account is closed after one year from the date of account opening but before expiry of two years, 1.5% of the principal amount will be deducted as penalty and balance amount paid to the depositor.
• If the account is closed after two years from the date of account opening but on or before maturity, 1% of the principal amount will be deducted as penalty and balance amount paid to the depositor.

Nomination Facility

• Available

Mode of Holding

• Generally single, joint mode is permitted but only spouses will be allowed to open accounts jointly with beneficiaries.