SCSS Calculator

Q: Who is eligible to open an SCSS account?
A: Any Indian resident who is 60 years or older can open an account. In some cases, a person between 55 and 60 who has retired on a voluntary or special voluntary retirement scheme can also open an account.

Q: Can I open an SCSS account at a bank or just the post office?
A: You can open an SCSS account at both. It is available at all post offices and many authorized public and private sector banks.

Q: What is the maximum amount that can be invested in an SCSS account?
A: The maximum investment limit for a single individual or a joint account is ₹30 lakh.

Q: What is the tenure of the SCSS scheme? Can I extend it?
A: The initial tenure of the scheme is 5 years. You can extend it for another 3 years by submitting an application within one year of the maturity date.

Q: Is the interest earned on an SCSS account taxable?
A: Yes, the interest earned from an SCSS account is fully taxable and is added to your total income for the financial year.

Q: Is there any tax benefit for investing in SCSS?
A: Yes, the amount you invest in an SCSS account is eligible for a tax deduction under Section 80C of the Income Tax Act.

Q: How is the interest on an SCSS account paid out?
A: The interest is calculated and paid out on a quarterly basis to the account holder’s savings account.

Q: Can I withdraw my money from an SCSS account before maturity?
A: Premature withdrawal is allowed after one year, but it comes with a penalty. A 1.5% penalty is deducted if you withdraw after 1 year but before 2 years, and a 1% penalty is deducted if you withdraw after 2 years.

Q: What happens to the account after the 5-year tenure is over?
A: After 5 years, the account matures. You can either close the account and withdraw your money or apply to extend it for another 3 years.

Q: Can I open an SCSS account jointly with my spouse?
A: Yes, a joint account can be opened with your spouse as the first account holder, provided both of you are eligible.