Senior Citizens Savings Scheme: HDFC Joins Banks Offering SCSS

Senior citizens can now open a Senior Citizen Savings Scheme (SCSS) account with HDFC Bank. The bank has started accepting deposits for accounts which is only for senior citizens. One can open an account with a post office or a bank. There are 26 banks, including public and private sector banks, per the Reserve Bank of India (RBI) website.

Launched in 2004, SCSS is now a 20-year-old scheme. It was designed to cater to the senior citizens’ need for regular and guaranteed income in old age. At present, the scheme offers 8.2 per cent interest, which is the highest rate offered compared to all the small savings schemes except the Sukanya Samriddhi Account scheme, which is for girl children and offers the same interest. Small savings interest rates are reviewed every quarter by the government.

Here is the list of banks offering SCSS accounts:

As per the RBI website, 26 banks are listed to offer SCSS accounts.

1. Andhra Bank

2. Allahabad Bank

3. Bank of Baroda

4. Bank of India

5. Bank of Maharashtra

6. Canara Bank

7. Central Bank of India

8. Corporation Bank

9. Dena Bank

10. Indian Bank

11. Indian Overseas Bank

12. Oriental Bank of Commerce

13. Punjab National Bank

14. State Bank of Bikaner & Jaipur

15. State Bank of Hyderabad

16. State Bank of India

17. State Bank of Mysore

18. State Bank of Patiala

19. State Bank of Travancore

20. Syndicate Bank

21. UCO Bank

22. Union Bank of India

23. United Bank of India

24. Vijaya Bank

25. IDBI Bank Ltd

26. ICICI Bank Ltd

All About SCSS Account:

• A person aged 60 years and above can open this account. Such a person can be a retired individual or self-employed. The person should be a resident Indian

• One can invest a maximum of Rs 30 lakh under this scheme. The minimum deposit amount is Rs 1,000. There is a tax benefit on the deposit amount up to Rs 1.5 lakh under Section 80C of the Income-tax Act, 1961. However, this tax benefit is available only in the old tax regime.

• A senior citizen can open an account under a single holding or joint holding with a spouse, but the maximum limit for the total deposit amount remains the same, Rs 30 lakh

• The amount is deposited at the time of account opening on which interest is paid every quarter at a fixed date, which is April 1, July 1, October 1, and January 1 every year. The interest is paid directly to the depositors’ savings account, whether with the same bank or another bank

• Note that the minimum investment period for this account is five years; however, premature withdrawal is allowed if required. There is a penalty for premature withdrawal or account closure before maturity

• It is a dependable source of regular income. The account can be renewed in blocks of three years multiple times without a limit

HDFC’s onboarding to offer SCSS may benefit many seniors because the bank has a vast presence in the country and already has a large customer base. As of December 31, 2024, the bank had 9,143 branches and 21,049 ATMs across 4,101 cities or towns.

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