Can You Break Your SCSS Deposit Early?
The Senior Citizen Savings Scheme (SCSS) is one of the most trusted investment options for senior citizens in India. With its high interest rates, government backing, and quarterly payouts, it’s no surprise that SCSS remains a favorite among retirees looking for security and stable returns.
Currently, residents aged 60 years and above can open an SCSS account individually or jointly, earning an attractive 8.2% interest rate for the current quarter.
But life is unpredictable, and sometimes you might need quick access to your funds. So, can you break your SCSS deposit before maturity? Yes, you can — but there are some penalties involved.
Here’s how early withdrawal from SCSS works:
🔹 Before 1 year:
- No interest is payable.
- Any interest credited will be recovered from the principal amount.
🔹 After 1 year but before 2 years:
- A penalty of 1.5% of the deposit amount is deducted.
🔹 After 2 years but before 5 years:
- A penalty of 1% of the deposit amount is deducted.
Important: The SCSS has a default lock-in period of five years, but these early exit options provide flexibility for unforeseen situations—though at a cost.
Plan wisely and weigh the benefits carefully before deciding to break your SCSS deposit early!
#SeniorCitizenSavingsScheme #SCSS #RetirementPlanning #SmartInvesting #FinancialFreedom #SeniorCitizens #InvestmentTips #SecureSavings #WealthManagement #FinancialSecurity