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.
Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank
IDBI Bank Ltd
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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