Welcome to HDFC Senior Citizens' Savings Scheme (SCSS)!

Q1) What is Senior Citizen Savings Scheme?

Senior Citizen Savings Scheme (SCSS) is a government-sponsored savings instrument launched in 2019, intending to provide senior citizens with a steady and secure source of income for their post-retirement life.

Q2) What is the interest rate for SCSS?

Currently the interest rate for SCSS is 8.2%. However, the interest rate changes on quarterly basis as per government notifications.

Q3) Is SCSS interest rate fixed for 5 years?

Yes, SCSS interest rate is fixed for 5 years once the account is opened. It will only change upon start of extension period if applicable.

Q4) Is senior citizen saving scheme interest tax free?

No, interest earned on the Senior Citizen Savings Scheme Account interest is not tax free. However, no TDS is deducted if Form 15G/H has been submitted by the depositor.

Q5) Can I invest more than ₹30 lakh in SCSS?

No, the account shall be opened with a minimum deposit of ₹1,000 and any sum in multiple of ₹1,000 not exceeding of ₹30 lakh

Q6) Are Non-resident Indians (NRI), Persons of Indian Origin and Hindu Undivided Family (HUF) eligible to invest in the SCSS?

No, Non-resident Indians (NRI), Persons of Indian Origin and Hindu Undivided Family (HUF) are not eligible to invest in the SCSS.

Q7) How often is the interest paid out for SCSS?

Interest is paid out every quarter on 1st April, 1st July, 1st October, 1st January, making it a reliable source of income to support your financial needs during retirement.

Q8) Is SCSS a safe and secure investment option?

Yes, SCSS is backed by the Government of India, making it a reliable and secure investment option for senior citizens.

Q9) Can I avail myself of tax benefits by investing in SCSS?

Yes, investments in the Senior Citizen Savings Scheme Account (SCSS) are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.

Q10) Can a person holding a Power of Attorney sign for the nominee in the nomination form?

No, a person holding a Power of Attorney cannot sign for the nominee in the nomination form.

Q11) Is partial withdrawal of the deposits from the accounts under the SCSS, permitted?

No, partial withdrawal of the deposits from the accounts under the SCSS is not permitted.

Q12) What are the documents required for opening a Senior Citizens Savings Scheme (SCSS) with HDFC Bank?

• SCSS opening form
• Passport size photograph
• Copy of self-attested PAN Card
• Copy of self-attested Aadhaar Card along with Non-DBT Aadhaar Declaration
• Additional documentation as per eligibility criteria

Q13) What are the mandatory documents related with KYC required for opening SCSS, 2019?

PAN and Aadhaar of the customer are mandatorily required for opening SCSS, 2019 account.

Q14) Can a joint account be opened under the Scheme with any person?

Yes. Joint account under the SCSS, 2019, can be opened only with the spouse.

Q15) Can a depositor open more than one account under the Scheme?

Any depositor may open an account at any branch by making an application in Form-1 along with the amount of deposit along with age proof.

A depositor may operate more than one account under these rules subject to the condition that the deposits in all accounts taken together shall not exceed the maximum limit as specified under scheme guidelines. A depositor may open the account in individual capacity or jointly with spouse.

Q16) What should be the age of the spouse in case of a joint account?

In case of a joint account, the age of the first account holder shall be considered to determine the eligibility to open the account and there shall be no age limit for the second applicant. (i.e. spouse).

Q17) What will be the share of the joint account holder in the deposit in an account?

The whole amount of deposit in a joint account shall be attributable to the first/ primary account holder only.

Q18) Whether both the spouses can open separate accounts in their individual capacity with separate limit of ₹30 lakh for each of them?

Both the spouses can open single/ joint accounts with each other with the maximum deposits upto ₹30 lakh in each account, provided both are individually eligible to invest under relevant provisions of the rules governing the Scheme.

Q19) Whether only one person or number of persons can be nominated in the accounts opened under the Scheme?

The depositor may, at the time of opening of the account, nominate a person or persons (not exceeding four individuals) who, in the event of death of the depositor, shall be entitled to receive the eligible balance.

Q20) Can a nomination be made after the account has already been opened?

No, Nomination is mandatory at the time of account opening.

Q21) Can a nomination be cancelled or changed?

Yes, the Nomination made by the depositor may be cancelled or varied by submitting a fresh nomination in Form -10 to the branch where the account is being maintained.

Q22) Can nomination be made in joint account also?

Nomination can be made in joint account also. In such a case, the joint holder will be the first person entitled to receive the amount payable in the event of death of the depositor. The nominee’s claim will arise only after the death of both the joint holders.

Q23) In case of a joint account, if the first holder/depositor expires before maturity, can the account be continued?

In case of a joint account, if the first holder/depositor expires before the maturity of the account, the spouse may continue the account on the same terms and conditions as specified under the SCSS Rules, if the spouse meets eligibility conditions under the Scheme on the date of death of the account holder. However, if the second holder, i.e., spouse has his/her own individual account, the aggregate of his/her individual account and the deposit amount in the joint account of the deceased spouse should not be more than the prescribed maximum limit.

Q24) What happens to the accounts if both the spouses are maintaining individual accounts and not any joint account and one of them expires?

If both the spouses have opened separate accounts under the Scheme and either of the spouses dies during the tenure/currency of the account(s), then such account(s) standing in the name of the deceased depositor/spouse shall not be continued and such account(s) shall be closed. The account can be closed by making an application in Form ‘3’.

Q25) Whether any fee has been prescribed for nomination and/or change/cancellation of nomination?

No fee has been prescribed for nomination and / or change/cancellation of nomination(s) in the accounts under the SCSS, 2019.

Q26) What is the age limit in the case of retired Defence Personnel for investment in the scheme?

The retired personnel of Defence Services (excluding Civilian Defence Employees) will be eligible to subscribe under the scheme on attaining the age of fifty years subject to fulfilment of other specified conditions.

Q27) What is the meaning of ‘retirement benefits’ for the purpose of SCSS, 2019?

"Retirement benefits" for the purpose of SCSS Rules have been defined as 'any payment due to the depositor on account of retirement on superannuation or otherwise and includes Provident Fund dues, retirement/superannuation gratuity, commuted value of pension, cash equivalent of leave, savings element of Group Savings linked Insurance Scheme payable by employer on retirement, retirement-cum-withdrawal benefit under the Employees’ Family Pension Scheme and ex-gratia payments under a Voluntary or a Special Voluntary Retirement Scheme'

Q28) Can deposits under the SCSS scheme be made only from amounts received as retirement’s benefits?

In case an investor has attained the age of 60 years and above, the source of amount being invested is immaterial, provided amount of single deposit is less than ₹10 lakh. If the amount of a single deposit is more than ₹10 lakh, the source of funds in mandatory. However, if the investor is 55 years of age or above, but below 60 years and has retired on superannuation or otherwise on the date of opening of account under the Scheme or has retired from the Defence Services with age 50 years and above or spouse of deceased government employee died in harness, only the retirement benefits can be invested in the SCSS.

Q29) Is there a period prescribed for opening deposit account under the SCSS scheme, by the senior citizen, from the retirement benefits?

If the investor is 60 years of age or above, there is no time period prescribed for opening the SCSS. However, for those below 60 years, following time limits have been prescribed:

The persons who have attained the age of 55 years or more but less than 60 years and who retired on superannuation or otherwise on the date of opening of an account under these rules, subject to the condition that the account is opened by such individual within three months of the date of receipt of retirement benefits and proof of date of disbursal of such retirement benefits along with a certificate from the employer indicating the details of retirement on superannuation or otherwise, retirement benefits or admissible financial assistance to an eligible government employee who died in harness, employment held and period of such employment with the employer, is attached with the application form.

The retired personnel of Defence Services (excluding Civilian Defence Employees) will be eligible to subscribe under the Scheme on attaining the age of fifty years subject to the fulfilment of other specified conditions. condition that the account is opened by such individual within three months of the date of retirement benefits and proof of date of disbursal of such retirement benefits along with a certificate from the employer indicating the details of retirement.

The spouse of the government employee shall be allowed to open an account under this Scheme, if the government employee who has attained the age of fifty years and has died in harness, subject to the fulfilment of other specified conditions.

Explanation:- For the purposes of this proviso, the Government Employee includes all Central and State Government employees eligible for retirement benefit or death compensation."

Q30) Can an account holder obtain loan by pledging the deposit/ account under the SCSS, 2019?

The facility of pledging the deposit/ account under the SCSS-2019 for obtaining loans is not permitted since the account holder will not be able to withdraw the interest amount periodically, defeating the very purpose of the scheme.

Q31) Can I withdraw my SCSS investment before the maturity period?

Yes, the account holder may withdraw the deposit and close the account at any time on an application in Form-2 subject to the following conditions, namely: -

In case the account is closed before one year after the date of opening of account, interest paid on the deposit in the account shall be recovered from the deposit and the balance shall be paid to the account holder.

In case the account is closed after the expiry of one year but before the expiry of two years from the date of opening of the account, an amount equal to 1.5% of the deposit shall be deducted, and the balance shall be paid to the account holder.

In case the account is closed on or after the expiry of two years from the date of opening of the account, an amount equal to 1% of the deposit shall be deducted and the balance shall be paid to the account holder.

However, if the depositor is availing the facility of extension of account under, he/she withdraws the deposit and close the account at any time before the expiry of one year from the date of extension of the account, an amount equal to 1% of the deposit shall be deducted and the balance shall be paid to the account holder.

Q32) Can an SCSS be extended?

A depositor may extend the account for a further period of three years multiple times by making an application on Form-4, to the branch within a period of one year from the date of maturity

Q33) Does an account, which is not extended on maturity, earn any interest?

In case a depositor does not close the account on maturity and also does not extend the account, the account will be treated as matured and the depositor will be entitled to close the account at any time subject to the condition that the post maturity interest at the rate as applicable to the deposits under the Post Office Savings Accounts from time to time will be payable on such matured deposits up to the end of the month preceding the month of the closure of the account.

Q34) Whether Change of name or surname may be allowed by the branch?

Yes. Change of name or surname may be allowed by the branch by following the procedure laid down by RBI for change of name or surname in Bank Savings account.

Q35) Whether Joint Account can be converted into Single Account?

Yes. It shall be allowed only in case of a single surviving Joint Account Holder.

Q36) Whether NRI can be made nominee?

Yes. Non-resident Indians shall be eligible to be nominated as nominee subject to the condition that payment to such nominee/s shall be on non-repatriation basis.

Q37) If there is no nomination in the account, then how the deceased settlement will be done by the branch if the proceeds are up-to ₹5 lakh?

If a depositor dies and there is no nomination in force at the time of his death, and the probate of his will or letters of administration of estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925), or legal heir certificate issued by the revenue authority not below the rank of Tahsildar having jurisdiction, is not produced within six months from the date of death of the depositor to the Branch ,where the account stands, then,-

if the eligible amount in the account does not exceed ₹5 lakh, the branch, for reasons to be recorded in writing, may pay the same to any person appearing to the branch as the rightful claimant and to the satisfaction of the branch, to be entitled to receive the amount or to administer the estate of the deceased, on an application in Form- 11 accompanied by the following documents; namely:-

• Death certificate of the account holder;
• Passbook or deposit receipt or statement of account in original;
• Affidavit in Form-13;
• Letter of disclaimer in Form-14;
• Bond of Indemnity in Form-15; and
• Identity proof of the legal heir;

Provided further that, in case of any dispute raised before the Branch and before the payment of claim, the amount shall be paid by the Branch to the claimant on submission of a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the Court only along with the following documents; namely:-

• Claim form;
• Pass book or deposit receipt or statement of account in original;
• Death certificate of the account holder; and
• Identity proof of the legal heir.

If there is no nomination in the account, then how will the deceased settlement be done by the branch if the proceeds are above ₹5 lakh

If the eligible amount in a deceased account is above ₹5 lakh, the amount shall be paid by the Branch to the claimant on submission of the probate of his will or letters of administration of estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the Court, or legal heir certificate issued by the revenue authority not below the rank of Tahsildar having jurisdiction along with the following documents; namely:-

• Claim form;
• Passbook or deposit receipt or statement of account in original;
• Death certificate of the account holder; and
• Identity proof of the legal heir;

Provided further that, in case of any dispute raised before the Branch and before the payment of claim, the amount shall be paid by the Branch to the claimant on submission of a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the court only along with the following documents; namely:-

• Claim form;
• Passbook or deposit receipt or statement of account in original;
• Death certificate of the account holder; and
• Identity proof of the legal heir.

Q38) If there is no nomination in the account, then how will the deceased settlement be done by the branch if the proceeds are above ₹5 lakh

If the eligible amount in a deceased account is above ₹5 lakh, the amount shall be paid by the Branch to the claimant on submission of the probate of his will or letters of administration of estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the Court, or legal heir certificate issued by the revenue authority not below the rank of Tahsildar having jurisdiction along with the following documents; namely:-

• Claim form;
• Passbook or deposit receipt or statement of account in original;
• Death certificate of the account holder; and
• Identity proof of the legal heir;

Provided further that, in case of any dispute raised before the Branch and before the payment of claim, the amount shall be paid by the Branch to the claimant on submission of a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the court only along with the following documents; namely:-

• Claim form;
• Passbook or deposit receipt or statement of account in original;
• Death certificate of the account holder; and
• Identity proof of the legal heir

Q39) Can I appoint my spouse as partner in a joint account if they are just 45 years old?

Since you already have an SCSS, you are free to appoint your spouse as the joint account holder. It's the account holder’s age that is the qualifying factor here and not their spouse’s. Thus, the spouses age doesn't affect their eligibility to act as a joint partner in the account. However, the converse of this does not hold true as the spouse in this example is just 45 years old and the minimum age to be eligible to own a SCSS is 60 years.

Q40) How many accounts can be opened under SCSS by a senior citizen?

Please note that you can make the deposit to the account in a single payment. Therefore, an account holder may operate more than one account under the scheme subject to the condition that the deposits in all the accounts taken together shall not exceed the maximum limit, i.e. ₹30 lakh across all banks under SCSS.
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Q41) What is value date from which the SCSS deposit shall start to bear interest?
Post submission of application and processing at Operations, funds will be debited from the customer savings account, the value date will be date of debit from the account.