The senior citizen saving scheme age limit is 60, relaxed in two cases: superannuated or voluntarily retired people between 55 and 60, and retired defence staff from 50, provided either group invests within a month of getting retirement money. There is no upper age limit.
This page lists every rule a depositor needs: deposit limits, lock in, premature closure, extension, tax, TDS and the forms. Rates and returns are on the main SCSS guide.
At a glance
Minimum age
60 (55 retired, 50 defence retired)Upper age
NoneMaximum limit
₹30 lakh per personLock in
5 years, early exit with chargesExtension
3 years at a timeTax benefit
Deposit deductible, old regime
Senior citizen saving scheme age limit and eligibility
| Depositor | Eligible? | Condition |
|---|---|---|
| Age 60 or more | Yes | None |
| Age 55 to 60, retired | Yes | Invest within 1 month of retirement benefits; amount up to those benefits |
| Retired defence, 50 or more | Yes | Same one month condition |
| Spouse in a joint account | Yes | Joint only with spouse; first holder must be eligible |
| NRI, HUF | No | Not allowed |
Deposit limit: maximum and minimum
Deposits start at ₹1,000 and rise only in whole thousands. The maximum is ₹30 lakh in total across all SCSS accounts a person holds, at post offices and banks. In a joint account, the whole amount counts toward the first holder's limit. A deposit above the limit is refunded, with interest only at the savings rate on the excess.
Senior citizen saving scheme lock in period and withdrawal rules
| Closed | Deduction |
|---|---|
| Before 1 year | Interest paid so far is recovered from the deposit |
| 1 to 2 years | 1.5% of the deposit |
| After 2 years | 1% of the deposit |
| Extended account, after 1 year of extension | No deduction |
| On death | No deduction; savings rate interest after death |
Partial withdrawal is not allowed. The locking period is effectively five years, with these exit charges.
Extension rules
A maturing account may run three more years if the holder applies inside twelve months of maturity. Extension can be repeated in blocks of three years. The extended period earns the rate applicable on the date of maturity, not the original rate, and the account can be closed after one year of extension without any deduction.
Is senior citizen saving scheme taxable
The deposit qualifies for the ₹1.5 lakh deduction under the old regime, now under section 123 (formerly 80C) of the new Income-tax Act. The interest is taxable every year. TDS is cut when interest exceeds the threshold for senior citizens in a year; Form 15H prevents TDS when the depositor's total tax is nil. Under the old regime, seniors also have a separate deduction for interest income, which can offset part of SCSS interest.
Senior citizen saving scheme form list
- Account opening form (Form A), with Aadhaar, PAN, age proof and photos.
- Retirement proof for those under 60.
- Nomination form, which can also be filed later.
- Extension form within a year of maturity.
- Premature closure form.
- Form 15H each year if no tax is due.
Banks authorised for SCSS use the same forms; see SCSS through a bank.
Rules people often get wrong
| Belief | Actual rule |
|---|---|
| Interest is paid monthly | Quarterly only |
| Limit is per account | Limit is per person, ₹30 lakh across all accounts |
| Extension keeps the old rate | Extension gets the rate on the maturity date |
| Anyone can be a joint holder | Only the spouse |
For the drawbacks behind these rules, see disadvantages of SCSS.
Frequently asked questions
What is the age limit for senior citizen saving scheme?
Sixty, dropping to 55 for retirees and 50 for ex defence personnel. No upper limit.
What is the maximum limit for SCSS?
₹30 lakh per person in total.
Can I withdraw SCSS before 5 years?
Yes, with charges: interest recovered before one year, 1.5% in the second year, 1% after that.
How many times can SCSS be extended?
As often as you like, three years each time, applying within a year of every maturity.
Is SCSS interest taxable?
Yes, every year. Old regime filers can deduct what they put in.
Can my son be a joint holder in SCSS?
No. Only the spouse can be a joint holder.
Is there a senior citizen saving scheme form online?
Forms are available at post offices and bank branches, and can be downloaded from the India Post website.