PM Vaya Vandana Yojana & Senior Citizen Savings Schemes
In this guide
Step-by-step Process
Senior Citizen Savings Scheme (SCSS)
Eligibility: 60+ years (55+ for VRS retirees, 50+ for defence retirees). Interest rate: Currently 8.2% per annum (reviewed quarterly). Maximum investment: ₹30 lakh per individual (or joint). Tenure: 5 years (extendable by 3 years). Interest paid quarterly. Available at post offices and authorized banks. 80C deduction up to ₹1.5 lakh.
PM Vaya Vandana Yojana (PMVVY)
LIC-managed pension scheme for 60+ year olds. Guaranteed return: 7.4% per annum (in monthly mode). Maximum investment: ₹15 lakh per senior citizen. Pension options: Monthly, quarterly, half-yearly, annual. Tenure: 10 years. Death benefit: Purchase price returned to nominee. Premature exit allowed for critical illness (98% of purchase price refunded).
Post Office Monthly Income Scheme (POMIS)
Not exclusive to seniors but very popular. Interest: 7.4% p.a. (paid monthly). Maximum: ₹9 lakh (single), ₹15 lakh (joint). Tenure: 5 years. Premature withdrawal: After 1 year with penalty (2% before 3 years, 1% after). Combine with SCSS for higher income. Monthly interest can be auto-credited to savings account.
How to Open SCSS Account
Visit nearest post office or authorized bank (SBI, HDFC, ICICI, etc.). Fill Form A. Documents: Age proof (Aadhaar/PAN/Birth certificate), Address proof, Photographs. Payment: Cheque/DD for lump sum investment. Account opening same day. Multiple accounts allowed; total investment across all accounts ≤ ₹30 lakh.
Official Government Portals
Common Questions
Is TDS deducted on SCSS interest?
Yes, TDS is deducted if interest exceeds ₹50,000 per year (higher limit for seniors). Submit Form 15H if your total income is below taxable limit — this stops TDS deduction. Interest from SCSS is fully taxable as per your income tax slab.
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