Pradhan Mantri Senior Citizen Saving Scheme : Interest Rate, How to Apply, Eligibility Criteria

Pradhan Mantri Senior Citizen Saving Scheme – is a Government of India-backed retirement benefit program. Which all senior citizens residing in India can invest in this scheme singly or jointly and get access to regular income with tax benefits. This is a post office savings scheme. Senior citizens can open an account under this scheme to avail the benefits of Pradhan Mantri Senior Citizen Saving Scheme. You can open an account under this scheme at any post office branch or authorized bank in India and avail its benefits.

Pradhan Mantri Senior Citizen Saving Scheme Features

Attribute	Details
Name of the Scheme	Pradhan Mantri Senior Citizen Savings Scheme (SCSS)
Introduced By	Government of India
Objective	To provide a regular income stream to senior citizens
Target Beneficiaries	Senior citizens aged 60 years and above
Eligibility	Individuals aged 60 years or more; 55 years for those who have retired on superannuation or under a voluntary retirement scheme (VRS)
Interest Rate	8.2% per annum (subject to quarterly review by the government)
Deposit Limits	Minimum: ₹1,000; Maximum: ₹15 lakhs
Tenure	5 years (extendable by an additional 3 years)
Interest Payment	Quarterly
Taxation	Interest income is taxable; eligible for Section 80C deduction up to ₹1.5 lakhs
Premature Withdrawal	Allowed after 1 year with applicable penalties
Application Procedure	Available at post offices and designated banks
Required Documents	Proof of age, identity proof, address proof, passport-size photographs
Where to Apply	Post offices, designated public sector banks, and select private sector banks
Official Website	www.nsiindia.gov.in
Contact for Assistance	Post offices or designated bank branches
Helpline	Available at respective banks and post offices
Maturity Benefits	Principal amount returned along with the final interest payment upon maturity

Benefits of Pradhan Mantri Senior Citizen Saving Scheme

• The Pradhan Mantri Senior Citizen Saving Scheme is an investment scheme sponsored by the Government of India, making it considered safe and highly reliable.
• Account opening in this scheme can be done through a simple process, which can be opened from any authorized bank or any post office in India
• This account can be easily transferred anywhere in India.
• Beneficiaries are offered higher interest rates on deposits under this scheme.
• Under the Pradhan Mantri Senior Citizen Saving Scheme, the interest amount is paid to the beneficiary on a quarterly basis. The interest is credited on the first day of April, July, October, and January of every financial year.
• Under this scheme, deposits are eligible for income tax deductions of up to ₹1.5 lakh under Section 80C of the Indian Income Tax Act, 1961.
• Normally this scheme account has a tenure of 5 years, the beneficiary can extend it for another 3 years after 5 years.

pradhan mantri senior citizen saving scheme interest rate

Currently, the interest rate for the Pradhan Mantri Senior Citizen Saving Scheme is 8.2% per annum. This rate is applicable from April 1, 2024, to March 31, 2025. The interest will be paid on a quarterly basis. The interest rate under this scheme may slightly change every financial year.

Pradhan Mantri Senior Citizen Saving Scheme Eligibility Criteria

An applicant must meet the following eligibility criteria to register under the Pradhan Mantri Senior Citizen Saving Scheme.

• The applicant must be a permanent resident of India.
• Retired civil employees above 55 years and below 60 years. However, investments under this scheme must be made within 1 month of retirement from service.
• Retired defense employees above 50 years and below 60 years. However, investments under this scheme must be made within 1 month of retirement from service.
• Under this scheme the applicant has to deposit a minimum of Rs.1000 per month.
• The applicant can open the account under this scheme individually or jointly with spouse only. However, the entire amount deposited in the joint account will be attributable to the first account holder only.
• Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) cannot apply for this scheme.

Documents Required to Open Pradhan Mantri Senior Citizen Saving Scheme

Following are the documents you may need to open Pradhan Mantri Senior Citizen Saving Scheme account.

• 2 passport-sized photographs
• Proof of identity such as PAN card, Aadhaar card, Voter ID, passport, etc.
• Proof of address such as Aadhaar, landline bills, etc.
• Proof of age such as birth certificate, PAN card, Voter ID, etc.
• Bank Account with IFSC Code
• Senior citizen card
• Mobile Number
• Email ID

How to Open an Account under the Pradhan Mantri Senior Citizen Saving Scheme ?

An account under Pradhan Mantri Senior Citizen Saving Scheme can be opened at any post office or private and public sector bank in India. The procedure for both is similar and is mentioned below

Pradhan Mantri Senior Citizen Saving Scheme account with a post office

Step 1: Visit your nearest Post office branch and collect the Pradhan Mantri Senior Citizen Saving Scheme application form or on the official website of the India Post.

Step 2: Duly fill up Form A.

Step 3: Submit the original and photocopies of all the necessary documents, broadly address and identity proof.

Step 4: Submit the application form, documents and the deposit money with the post office staff.
Step 5: The post office employees will process the application and open the Pradhan Mantri Senior Citizen Saving Scheme account.

Opening Pradhan Mantri Senior Citizen Saving Scheme Account at an Authorized Bank Branch

Step 1: Visit your nearest authorized Bancor branch or the branch of your bank where you have a savings account.

Step 2: Request an application form and fill it out with your personal information.

Step 3: Submit the application form, along with any supporting documentation, to the bank’s officials, along with the deposit amount in cash or check.

Step 4: The Bank professionals will process your application and the payment received. The Pradhan Mantri Senior Citizen Saving Scheme account will be created once the payment is processed.

Banks Offering the Pradhan Mantri Senior Citizen Saving Scheme

The following banks offer Pradhan Mantri Senior Citizen Saving Scheme

• Allahabad Bank
• Andhra bank
• Bank of Maharashtra
• Bank of Baroda
• Bank of India
• Corporation Bank
• Canara Bank
• Central Bank of India
• Dena Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank
• Oriental bank of Commerce
• Punjab National Bank
• State bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State Bank of India
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Travancore
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
• ICICI Bank