Senior Citizens Savings Scheme : FAQ Part 4


Senior citizen saving scheme (SCSS) is best interest paying scheme for eligible senior citizens- 60 years.

Investment in this scheme is also eligible for deduction under the income tax (IT) act section 80C. Interest in this scheme is 9.3% per year,which is quarterly compounding.

** 16. Can a person holding a Power of Attorney (PoA) 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. (GOI letter No. F.15 / 8 / 2005 / NS-II dated March 02, 2006)

** 17. In case of a joint account, if the first holder / or depositor expires before maturity, can the account be continued?

In case of a joint account, if the first holder / or 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.

However, if the second holder that is 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. In case the maximum limit is breached, then the remaining amount shall be refunded, so that the aggregate of the individual account and deceased spouse’s joint account is maintained at the maximum limit. [Rules 6 (4) and 8 (3)]

** 18. What happens to the accounts if both the spouses are maintaining individual accounts & 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 currency of the account(s), the account(s) standing in the name of the deceased depositor / or spouse shall not be continued and such account(s) shall be closed.

The account can be closed by making an application in Form ‘F’. Annexures II & III to Form ‘F’ can be attested by the Oath Commissioner or Notary Public [Rule 8].

** 19. 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, 2004. (GOI letter F. No.2 / 8 / 2004 / NS-II dated October 13, 2004)

** 20. 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 irrespective of the age limit of  60 years subject to the fulfillment of other specified conditions. (The Senior Citizens Savings Scheme (Amendment) Rules, 2004 notified on October 27, 2004)
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