ICICI Bank SCSS

Home / Glossary / Saving Schemes / ICICI Bank SCSS

Introduction

The government created the Senior Citizen Savings Scheme (SCSS) to provide financial security and stability to senior citizens in India. Offered through leading banks like ICICI Bank, the SCSS scheme offers attractive interest rates, tax benefits, and guaranteed returns. The ICICI Bank Senior Citizen Saving Scheme is an excellent option for retirees looking for a safe investment avenue with a steady income.

Features of the Senior Citizen Savings Scheme (SCSS)

The ICICI Senior Citizen Saving Scheme comes with the following key features:

Government-backed security: Ensures capital safety and guaranteed returns.
Attractive interest rates: Higher than regular fixed deposits.
Tenure: A standard tenure of 5 years, extendable by an additional 3 years.
Minimum deposit: Rs. 1,000.
Maximum deposit: Rs. 15 lakh per individual.
Quarterly interest payout: Regular income through quarterly disbursed interest.
Premature withdrawal: Allowed after one year with applicable penalties.
Tax benefits: Eligible for deductions under Section 80C of the Income Tax Act.

Rate of Interest Available against SCSS in ICICI Bank

The government sets and revises the interest rate for the Senior Citizen Savings Scheme (SCSS) in ICICI Bank every quarter. It generally offers higher interest rates than standard savings accounts and fixed deposits.

You may also want to know about the Unclaimed EPF Account

Taxability of Senior Citizen Saving Scheme

The principal amount is eligible for tax deduction under Section 80C (up to Rs. 1.5 lakh per year).
The interest earned is taxable and subject to Tax Deducted at Source (TDS) if it exceeds Rs. 50,000 annually.

Comparison between Senior Citizen Saving Scheme and Fixed Deposit

Feature	SCSS	Fixed Deposit (FD)
Government-backed	Yes	No (Only insured up to Rs. 5 lakh)
Interest Rate	Higher than FD	Lower than SCSS
Tax Benefits	Section 80C eligible	Not eligible under 80C
Tenure	5 years (extendable)	Flexible (7 days to 10 years)
Premature Withdrawal	Allowed after 1 year with a penalty	Allowed with bank-specific penalties
Interest Payout	Quarterly	Monthly, Quarterly, Half-yearly, or on maturity

Eligibility to Invest in Senior Citizen Saving Scheme ICICI

To open an ICICI Senior Citizen Saving Scheme account, the applicant must fulfill the following eligibility criteria:

Must be an Indian resident aged 60 years or above.
Retired individuals aged 55-60 years who have taken voluntary retirement (VRS) or superannuation.
Non-resident Indians (NRIs) are not eligible to invest in SCSS.
HUFs (Hindu Undivided Families) are not eligible for SCSS.

Documents Required to Open an ICICI Bank Senior Citizen Scheme Account

To open an SCSS account in ICICI Bank, you must provide the following documents:

Filled SCSS application form (available at ICICI Bank branches or online).
Age proof: Aadhaar Card, PAN Card, Passport, or Birth Certificate.
Identity proof: Aadhaar Card, Passport, Voter ID, or Driving License.
Address proof: Utility bills, Bank passbook, or Ration card.
Retirement proof (if applicable): Early retirees (55-60 years) must provide retirement proof.
Recent passport-sized photographs.

You may also want to know Kanya Sumangala Yojana

Benefits of ICICI Senior Citizen Saving Scheme

Guaranteed returns: SCSS is a risk-free investment offering higher interest rates than standard bank deposits.
Regular income flow: Interest is credited quarterly, ensuring financial stability.
Tax benefits: Deposits are eligible for deductions under Section 80C.
Simple application process: SCSS accounts can be opened easily at ICICI Bank branches.
Flexibility in withdrawals: Premature withdrawals are allowed after one year.
Extension option: The scheme can be extended by 3 years after maturity.

Conclusion

The ICICI Bank Senior Citizen Savings Scheme (SCSS) is a safe and lucrative investment option for retirees seeking stable income with tax benefits. With higher interest rates, government-backed security, and flexible withdrawal options, SCSS is a better alternative than traditional fixed deposits. Senior citizens looking for risk-free investments with a regular income should consider opening an SCSS account at ICICI Bank.

Frequently Asked Questions

Who is eligible for the ICICI Bank Senior Citizen Saving Scheme?

Indian residents aged 60 years and above and retired individuals aged 55-60 years (under VRS or superannuation) are eligible.

Can NRIs open an SCSS account in ICICI Bank?

No, Non-Resident Indians (NRIs) are not eligible to invest in the Senior Citizen Savings Scheme.

What is the interest rate for ICICI Bank SCSS?

The interest rate is revised quarterly by the government and is higher than regular fixed deposits.

Can I extend the tenure of my SCSS account in ICICI Bank?

Yes, the tenure can be extended for 3 years after the initial 5-year period.

What is the maximum amount I can deposit in SCSS?

The maximum deposit amount in an SCSS account is Rs. 15 lakh.

Can I withdraw my SCSS deposit before maturity?

Yes, premature withdrawal is allowed after 1 year, but a penalty applies.

Is interest earned under SCSS taxable?

Yes, the interest earned is taxable, and TDS is deducted if it exceeds Rs. 50,000 annually.

Where can I open an SCSS account with ICICI Bank?

You can open an SCSS account at any ICICI Bank branch by submitting the required documents.

Open Free Demat Account

Related Terms

Explore our feature-rich web trading platform

Get the link to download the App