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ICICI Senior Citizen Saving Schemes - ICICI SCSS Interest Rate

Updated On Aug 22, 2023

Retirement is an inevitable phase of life that brings about various financial concerns for individuals. To address this issue, the Government of India has introduced several financial schemes, one of which is the ICICI Bank Senior Citizen Saving Scheme (SCSS). Designed exclusively for senior citizens aged 60 and above, this scheme offers an attractive fixed deposit investment opportunity with guaranteed returns. In this article, we will delve into the various aspects of the ICICI Bank SCSS, including its features, advantages, eligibility criteria, taxability, and a comparison with fixed deposits. Additionally, we will explore the necessary documents required to open an account, the application process, and the benefits it provides to senior citizens.

ICICI Bank SCSS Features:

Understanding the features of the ICICI Bank SCSS is essential to make informed investment decisions. Here are the key features of the ICICI Bank SCSS:

  • Investment Amount: Senior citizens can invest a minimum of Rs. 1,000 and a maximum of Rs. 30 lakhs in multiples of Rs. 1,000.
  • Investment Method: Deposits can be made using cheques, demand drafts, or pay orders.
  • Interest Rate: The interest rate on the deposit is 8.2% per annum, which is taxable. The rate is fixed and paid out quarterly.
  • Tenure: The tenure of the SCSS is five years, with the option to extend it for an additional three years.

ICICI Senior citizen savings scheme

  • Premature Account Closure: Premature account closure is allowed after one year from the opening date, subject to penalties.
  • Account Extension: Account holders can extend the SCSS account for a further three years after maturity, with a request submitted within a year of maturity.
  • Joint Account: Senior citizens can open a joint account with their spouses.

Below is a table summarising the additional features of the ICICI Bank Senior Citizen Saving Scheme (SCSS):



Scheme Launched By

Government of India

Returns Type

Guaranteed Returns

ICICI SCSS Interest Rate 2023

8.20% p.a. (for April-June Quarter)

The Ministry of Finance periodically specifies the interest rate.

Interest option


Interest Payment Date

1st Working Day of 

  • April 
  • July 
  • October 
  • January

Investment Modes

  • Cheque
  • Pay order 
  • DD against "ICICI Bank Senior Citizen Savings Scheme, 2019"

ICICI Bank SCSS Tax Benefits

Tax Deductions of up to Rs. 1.5 lakhs under Section 80C of the IT Act, 1961


TDS is levied on the interest earned (if higher than Rs. 10,000 annually)

For Tax Exemption

Submit Form 15H with ITR (if taxable income falls within basic tax exemption limits)

Premature Exit

  • Premature account closure before 1 year: Penalty on quarterly interest accumulated
  • Premature account closure between 1-2 years: Penalty at 1.5% of remaining balance
  • Premature account closure after 2 years: Penalty at 1% of remaining balance

Value date

Date of realisation of the cheque or demand draft

ICICI Bank SCSS Advantages:

Opening an account under the ICICI Bank Senior Citizen Saving Scheme comes with a range of advantages, making it an attractive investment option for retirees. Here are the key benefits:

  • Direct Credit: Interest can be directly credited to the ICICI Bank account. Alternatively, four post-dated cheques can be provided annually.
  • Account Statement: Depositors receive a detailed account statement containing transaction information and the deposited balance.
  • Phone Banking: The bank offers phone banking facilities for any queries related to the SCSS.
  • Tax Benefits: Investments in the SCSS are eligible for tax deductions up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act, reducing the taxable income for senior citizens.
  • Secure Investment: The SCSS is a government-backed scheme providing senior citizens with a safe and reliable avenue to invest their savings.
  • Nomination Facility: Account holders can nominate beneficiaries to receive the investment amount in the event of the depositor's demise, ensuring a seamless transfer of funds to their loved ones.
  • Loan Against SCSS: Senior citizens can avail of loans against their SCSS account balance, providing them with liquidity during emergencies.

ICICI Bank SCSS Eligibility Criteria:

To be eligible for the ICICI Bank Senior Citizen Saving Scheme, individuals must meet the following criteria:

Age Criteria:

  • Single Account: Individuals aged 60 years and above are eligible.
  • Joint Account: Both account holders must be aged 60 years and above.
  • Superannuation/ VRS/ Special VRS Retirement:
  • Individuals aged 55 years or above who have retired can invest within one month of receiving retirement benefits.
  • Proof of retirement benefits disbursal from the employer is required.
  • Ex-Servicemen from Defence Services:
  • Defence personnel aged 50 years or above are eligible to invest.


  • The scheme is available to Indian citizens only.
  • Maximum Number of Accounts:
  • Each individual can open only one SCSS account, either as a single or joint account holder.

Documents Required for ICICI Bank SCSS:

The following documents are necessary to open an SCSS account:

  • Aadhar Card
  • Valid Passport
  • PAN Card
  • Voter ID Card
  • Driving License
  • Job Card under NREGA Scheme

The following are essential to establish the individual's eligibility for investing in the ICICI Bank Senior Citizen Saving Scheme, especially for those aged between 55 and 60 years.

  • Superannuation/ Voluntary Retirement
  • Retirement Benefits
  • Period of Employment
  • Employment Specifications

Taxability of ICICI Bank SCSS:

Investments made in the ICICI Bank SCSS are eligible for tax deductions of up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act, 1961. However, it is essential to note that the interest earned on the SCSS deposit is taxable. If the interest income exceeds Rs. 50,000 in a financial year, TDS will be applicable. This means that the bank will deduct TDS on the interest earned, as per the prevailing tax rates, if it crosses the specified threshold. Investors should factor in the tax implications on the interest earned while evaluating the overall returns from the scheme.

ICICI Bank SCSS Application Process:

Opening an ICICI Bank Senior Citizen Saving Scheme account is a straightforward process. Here's a step-by-step guide:

  1. Step 1: Visit the nearest ICICI Bank branch or the bank's official website.
  2. Step 2: Obtain the bank's SCSS application form (Form A) or download it from the website.
  3. Step 3: Fill in the necessary details in the form, including personal information, investment amount, nominee details, etc.
  4. Step 4: Attach self-attested copies of the required documents, such as age proof, address proof, identity proof, and retirement-related documents (if applicable).
  5. Step 5: Submit the completed application form and documents to the bank's staff at the branch or through the website's online application portal.
  6. Step 6: Upon verification of the provided information and documents, the bank will open the SCSS account and provide the account details.
  7. Step 7: The depositor will receive the passbook and other relevant account-related documents.


The ICICI Bank Senior Citizen Saving Scheme is an attractive investment option for retired individuals, providing guaranteed returns and tax benefits. Senior citizens can secure their financial future with a minimum investment of Rs. 1,000 and a maximum of Rs. 30 lakhs. The scheme's features, advantages, and eligibility criteria make it a prudent choice for those seeking a safe and steady income source during retirement. By understanding the tax implications and comparing them with fixed deposits, senior citizens can make an informed decision based on their financial goals and requirements.

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  • What is the minimum age requirement to invest in the ICICI SCSS?

The minimum age requirement for individuals to invest in the ICICI Senior Citizen Saving Scheme is 60 years and above. However, individuals aged between 55 and 60 years who have opted for superannuation, voluntary retirement, or special voluntary retirement are also eligible to invest in the scheme.

  • Can I open a joint account under the ICICI SCSS?

Yes, the scheme allows for joint accounts. Both account holders in a joint account must be senior citizens aged 60 years or above.

  • What is the minimum and maximum investment amount in the ICICI SCSS?

The minimum investment amount required to open an account under the ICICI Senior Citizen Saving Scheme is Rs. 1,000. Investors can deposit funds in multiples of Rs. 1,000 after that. The maximum limit for investment in the scheme is Rs. 30 lakhs.

  • What is the interest rate offered on the ICICI SCSS for 2023?

The interest rate on the ICICI Senior Citizen Saving Scheme for 2023 is 8.20% per annum (for the April-June quarter). Please note that the interest rate may vary from quarter to quarter and is periodically determined by the Ministry of Finance.

  • What are the penalties for premature withdrawal from the ICICI SCSS?

In case of premature withdrawal before 1 year, a penalty on the quarterly interest accumulated is imposed. For withdrawals between 1 to 2 years, a penalty of 1.5% of the remaining balance is charged, and for withdrawals after 2 years, a penalty of 1% of the remaining balance is applicable.


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.