SENIOR CITIZEN SAVINGS SCHEME SBI

“Being prepared does not make the crisis disappear! Even if you’re ready, it’s still there, only in more manageable proportions.”

 

Currently, there are many schemes in the market to secure and protect the financial earnings of an ordinary man, especially for senior citizens. One such highly beneficial scheme is launched by the State Bank of India, known as the Senior Citizen Savings Scheme. This scheme is sanctioned by the Indian government and offered only to people of age 60 years and above. While a savings bank account helps get various offers on financial products and services, this scheme has a fixed maturity tenure with easy extension. Let’s look at other details and benefits that come under the Senior citizen savings scheme SBI.

 

Features of Senior citizen scheme SBI:

The Senior citizen scheme SBI is eligible for all customers of SBI of age 60 years and above. The primary benefits of this scheme involve;

• Though the lock-in period of the scheme is generally five years, there is a straightforward extension for up to three years further.
• The deposit made in an initial joint account can be received by the first account holder without any hassle.
• Multiple withdrawals cannot be made from the account.
• Only one person can be nominated by the depositor.
• The deposit amount can be between one thousand Indian rupees to fifteen lakh Indian rupees only.

Having looked at the basic details of the Senior citizen savings scheme, let’s now see the aspects pertaining to the Interest rate under the scheme.

 

Interest Rate parameter of Senior citizen savings scheme SBI:

The Senior citizen savings scheme SBI has the interest rates declared by the government of India very much in advance before every quarter of a particular year. Senior citizen savings scheme, also known as SCSS, has the interest rate for the fourth quarter, that is, January-March of the financial year 2021-2022, as 7.4% p.a.

Remember, the latest rate of interest applies to the scheme for the complete lock-in period of five years. Similarly, the current interest rates will be applicable once there is an extension to the tenure of the scheme. For instance, say the interest rate is 7% for the Senior citizen savings scheme SBI then for the next five years, which is the lock-in period, the interest rate will remain consistent at 7%. If the period is extended past five years, then the prevailing interest rate shall apply.

Keep in mind, as per the regulations, the interest rate under the Senior citizen savings scheme SBI the payment is done every quarter, and there is no option of accumulated payments. The rate of interest is paid on the date of deposit made, until the end of the quarter and again at the start of every coming quarter at the same rate.

 

Here are some of the interest rates in previous quarters for the SCSS:

Financial Year 2020 – 2021 Quarter 2 July to September - 7.4%

Financial Year 2020 – 2021 Quarter 1 April to June - 7.4%

Financial Year 2019 – 2020 Quarter 4 January to March - 8.6%

Financial Year 2019 – 2020 Quarter 3 October to December - 8.6%

Financial Year 2019 – 2020 Quarter 2 July to September - 8.6%

Financial Year 2019 – 2020 Quarter 2 April to June - 8.7%

 

Eligibility criteria for the Senior citizen savings scheme SBI:

Though the Senior citizen savings scheme SBI is eligible for citizens of and above age sixty years, there are few other rules defining this scheme, like;

• If a professional has opted for voluntary retirement or is retired with superannuation, then, in that case, that individual can avail the benefits of the Senior citizen savings scheme SBI even if they are more than fifty years old.
• Defense service personnel are eligible for this scheme as they retire at the age of fifty years.
• Individuals of Indian origin, Hindu undivided family members, or Non-resident Indians are not eligible for this scheme.
• Once you know whether you are eligible for the Senior citizen savings scheme SBI, the next thing to know are the documents required in the process and other intricate details.

 

Documents needed for Senior citizen savings scheme SBI:

To avail of the benefits of the Senior citizen savings scheme SBI, an account can be opened in any of the State bank of India branches. For the process, the documents to be submitted are;

• Duly filled scheme opting forms
• Proof of address, namely Aadhar card
• Personal ID proof like PAN card or passport
• Proof of age showing in the birth certificate or voter Id card
• Passport size photographs for official use

Once the Senior citizen savings scheme SBI is chosen, the individual can also gain tax benefits as per the set rules and guidelines.

 

Benefits of the Senior citizen savings scheme SBI:

There are huge advantages of the Senior citizen savings scheme SBI for the senior citizens of the country, and it has been launched by the Indian government only to give benefits to the older people. Benefits that include;

• A reasonable rate of interest in comparison to other forms of financial investment
• Tenure is easily extendable as per request
• There are tax benefits applicable as per the IT Act, India
• The account can be closed after a period of one year with a certain amount deducted from the deposit

 

The Senior citizen savings scheme SBI is undoubtedly very favorable for the senior citizens of India, making their older lives easier with greater financial strength and respectable investment for the future.

“Let our advance worrying become advance thinking and planning.” Winston Churchill

 

FAQs – Frequently asked questions.

Q1: Can SCSS be availed through a joint account?

Yes, the Senior citizen savings scheme SBI can be opened in joint but with spouse only.

Q2: Is it required to open a new savings account for the deposit of interest each time?

No, the interest earned from SCSS will be deposited into the existing savings account only.

Q3: In the case of a joint account of SCSS, is it required to deposit a specific amount in the account?

No, the joint account holder does not have to maintain any minimum deposit in the SCSS account. The whole investment is done and taken care of by the primary holder only.

Q4: Is there an option for multiple withdrawals under the SCSS account?

No, the SCSS account does not have multiple withdrawals facility

Q5: Is there any age limit to be part of a joint account with the Senior citizen savings scheme SBI?

No, for joint account holders under SCSS, there is no limit on the age criteria.

Q6: In case of any change or cancellation of a nominee for an SCSS account, is there a fee or charge?

No, there is no charge for change, cancellation, or even addition of nominees to the SCSS account.