Investment options for senior citizens: SCSS vs PMVVY; eligibility, investment limits and other features compared

The minimum entry age for PMVVY scheme is also 60 years, while there is no maximum entry age for the same.

SCSS currently offers interest at the rate of 7.4 percent on the investment.

On investments done in PMVVY scheme before March 31, 2021, the government has declared an interest rate of 7.4 percent payable monthly.

The minimum amount required to open the SCSS account is Rs 1,000, while the maximum amount should not exceed Rs 15 lakh. The account can be opened by cash if the amount is below Rs 1 lakh. However, if the amount is Rs. 1 lakh or more, one needs to deposit a cheque.

The maximum investment that can be made in PMVVY has also restricted to Rs 15 lakh per senior citizen.

The maturity period of SCSS is five years. After maturity, the account can be extended for further three years within one year of the maturity by giving application in a prescribed format.

Under PMVVY scheme, on the survival of the pensioner during the policy term of 10 years, pension in arrears are payable. On the death of the pensioner during the policy term of 10 years, the purchase price is refunded to the beneficiary. On survival of the pensioner to the end of the policy term of 10 years, purchase price along with final pension installment is payable.

In SCSS, premature closure is allowed after one year on deduction of an amount equal to 1.5 percent of the deposit. After two years, one percent of the deposit is deducted.

After completing 3 successful policy years, individuals can avail loan against a PMVVY investment. Pensioners can borrow a maximum of 75 percent of the purchase amount as a loan.