SBI Senior Citizen Savings Scheme: SBI SCSS Features, Benefits, Risk, Returns, Taxability

Manish Kothari
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Manish Kothari

What is SBI Senior Citizen Saving Scheme

The State Bank of India (SBI) is one of the largest financial institutions, operational since 1955 in India. It offers various types of financial products & services to individuals to meet their banking, financial, and investment needs. The government-backed senior citizen savings scheme is also offered by SBI and the scheme has been very popular among retirees or senior citizens to meet their regular income needs. 

The scheme ensures high safety of capital along with the interest payments because of the sovereign guarantee of the Indian Government on the SCSS investments. It is also popular among investors for their tax-saving purposes as investment in SCSS is eligible for deductions under Section 80C. 

In this article, we will have a look at the important features & offerings of the SBI’s Senior Citizen Saving Scheme. Let’s have a look:


  • An individual may initiate an account jointly with a spouse or in an individual capacity.
  • Hindu Undivided Family and NRIs are not eligible to open SCSS account.
  • An individual of the age 60 years & above.
  • Individual of 55 years or above but less than 60 years and who has retired on superannuation or otherwise on the date of initiating an account.
  • The retired Defence Personnel attaining the age of 50 years.


Deposit Amount:

The account can be opened with a minimum deposit of Rs. 1,000 & in multiples of Rs.1,000 but not exceeding Rs. 15 lakhs.


The scheme has a maturity tenure of 5 years. After the maturity period, the depositor may extend the account for a further period of 3 years.


The deposit made under this scheme shall bear interest as directed by the Government of India from time to time in a quarterly manner. Currently, the interest rate is 7.4% p.a. for Quarter 4 i.e October to December 2022.

Claim of Interest:

If the interest accrued every quarter is not claimed by an investor, such interest shall not earn further additional interest.

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The investors have the facility to name one or more nominees at the time of opening the account or during the tenure of the scheme. The nomination can also be varied or canceled during the tenure.

SBI Senior Citizen Savings Scheme Interest Rates 2022

PeriodPer Annum Interest Rates (w.e.f. 13th December 2022)Per Annum Interest Rates for Senior Citizens (w.e.f. 13th December 2022)
7 days to 45 days3.003.50
46 days to 179 days4.505.00
180 days to 210 days5.255.75
211 days to less than 1 year5.756.25
1 year to less than 2 years6.757.25
2 years to less than 3 years6.757.25
3 years to less than 5 years6.256.75
5 years and up to 10 years6.257.25

From 1st April 2021, interest rates are 7.4 ​% p.a., payable from the date of initiation/deposit of 31st March/30th Sept/31st December 2022 in the first instance & thereafter, interest will be paid on 31st March, 30th June, 30th Sept, and 31st December 2022. Interest rates are subject to revisions by the government every quarter in a financial year.

The interest rate for the current quarter i.e Q4 (October to December 2022) has been set at 7.25% p.a. 

Also Read :  Kotak Bank FD Interest Rates

Historical Rates

Q4 FY 20-21 Jan to March7.4
Q3 FY 20-21 Oct to Dec7.4
Q2 FY 20-21 July to Sept7.4
Q1 FY 20-21 April to June 7.4
Q4 FY 19-20 Jan to March8.6
Q3 FY 19-20 Oct to Dec8.6
Q3 FY 19-20 July to Sept8.6
Q3 FY 19-20 April to June8.7


Investing in SBI SCSS is an ideal opportunity for senior citizens & retired individuals to earn a good interest on their lump sum deposit. This is a good investment option offering financial security to the senior citizens by the way of quarterly interest payouts. The scheme aims to ensure regular income to the depositors for meeting their regular expenses & financial needs. Also, the scheme being backed by the Indian Government ensures the high safety of capital invested by the depositor. This scheme is available in the post office branches and authorized banks across India.


SBI SCSS holders can enjoy tax benefits under Section 80C of the Income Tax Act, 1961. The depositors can claim tax deductions of up to Rs.1.5 Lakhs in a financial year. 

Interest earned on the SCSS account is fully taxable. If the interest generated under this scheme in the financial year amounts to more than Rs.50,000, then it will attract Tax Deducted at Source (TDS) at the prescribed rate. The account holder will need to submit the Form 15G/15H if he/she does not want the TDS deduction. 


An SCSS account can be initiated in any SBI branch across India with these specified documents:

  1. Form A has to be filled for initiating an SCSS Account.
  2. Identity proof like Passport, PAN Card to be presented.
  3. Address proof such as Aadhar Card, Telephone bill is compulsory.
  4. Document for proof of age is mandatory. This could be in the form of a Senior Citizen Card, Passport, a Birth certificate issued by the Registrar of Births and Deaths or corporation, PAN card, Voter ID card, etc.
  5. Two Passport size photos.

All the above-mentioned docs must be self-attested.


An investor can make one deposit in an SBI SCSS account. As mentioned, this deposit has to be made in multiples of thousand and should not exceed the sum of Rs.15 Lakhs. 


The investors have the facility to extend the SCSS account for further 3 more years after the maturity period of 5 years. The extension can be made via filling the application Form B within a year of the maturity.


The deposit amount will be paid after 5 years from the account opening date. This deposit will be made available when the investor provides the passbook along with the duly filled application Form E. If the depositor fails to close the SCSS account with SBI on maturity, then the account will be deemed to be matured. 


In case of the unfortunate demise of the investor before maturity, the SCSS account will be closed and the deposit will be refunded along with the interest to the nominee/beneficiary. If there is no nominee, then the deposited amount will be paid to the legal heir of the account holder. In the case of a joint account, the account may be continued till maturity.


The Senior Citizen Saving Scheme account can be prematurely closed anytime as per the requirements of the individual. The investor would need to apply by filling the Form E to withdraw the deposited amount and close the SBI SCSS account. The account can be closed at anytime subject to the following conditions–

  • If the account is closed within 1 year of deposit, then no interest will be payable to the depositor.
  • If the account is closed after a year from the initiation but before 2 years, the balance shall be paid to the depositor after a deduction of 1.5% of the deposited amount.
  • If the account is terminated on or after 2 years from initiation, the balance shall be paid to the investor after a deduction of 1% of the deposited amount.

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