Overview of the Senior Citizens Savings Scheme

While retirement often comes with financial uncertainty, there are savings products that are safe and ensure guaranteed retirement income. The Senior Citizen Savings Scheme (SCSS), launched in 2004, is one such deposit scheme. Introduced by the Government of India, the main objective of the SCSS is to provide an assured return (paid every quarter) to senior citizens, and in doing so to create a guaranteed regular income flow. Capital Protection and Inflation Protection The capital in the SCSS is completely protected as the scheme is backed by the Government of India. It is however not inflation protected, which means whenever inflation is above the current interest rate, the deposit earns no real returns. However, when the inflation rate is below the current interest rate, it does manage a positive real rate of return. Guarantee Interest rates are aligned with G-sec rates of similar maturity, with a spread of 1 per cent. The government review

This article was originally published on February 25, 2021, and last updated on January 10, 2023.