Want To Open A Senior Citizen Savings Scheme At SBI? All You Need To Know
Senior Citizen Savings Scheme (SCSS), meant for people above the age of 60, offers an interest rate of 8.6 per cent per annum. An individual can open senior citizen savings account with post offices or commercial banks such as State Bank of India (SBI). A depositor can operate more than one SCSS account, subject to the condition that deposits in all accounts taken together do not exceed the maximum limit of Rs. 15 lakh and provided that deposits are restricted to the retirement benefits or Rs. 15 lakh whichever is lower, according to SBI’s website- sbi.co.in.
Given below are key things to know about SBI Senior Citizen Savings Scheme (SCSS):
- An individual of 60 years and above can open an SCSS account with SBI.
- A person of 55 years or more but less than 60 years who has retired on superannuation can also open this account.
- The retired personnel of defence services (excluding civilian defence employees) irrespective of the age limits can open SCSS account. However, he/she must fulfil other specified conditions, according to SBI.
- A depositor can open the account in individual capacity or jointly with spouse. In case of a joint account, age of first applicant/depositor is the only factor to decide the eligibility to invest under the scheme. There is no age bar/limit for the second applicant/joint holder.
- The whole amount of investment in an account under SCSS scheme is attributed to the first applicant only.
- There can be only one deposit in the SCSS account in multiple of Rs. 1,000 where the maximum amount must not exceed Rs. 15 lakh.
- The deposits can be made in cash, if the amount of deposit is less than Rs. 1 lakh.
- On an application, the depositor is permitted to withdraw the deposit and close the senior citizen savings account at any time after the expiry of one year.
- If the account is closed before the expiry of two years, an amount equal to one and half per cent of the deposit is deducted and the balance is paid to the depositor.
- In case the account is closed on or after the expiry of two years, an amount equal to one per cent of the deposit is deducted and balance is paid to the depositor.