The SBI Senior Citizen Savings Scheme (SCSS) is a government-backed savings plan tailored for individuals aged 60 and above, offering a secure investment avenue with attractive returns.
SBI SCSS: Key Features
- Interest Rate: 8.20% per annum, payable quarterly.
- Investment Tenure: 5 years, extendable by 3 years.
- Deposit Limits: Minimum ₹1,000; Maximum ₹30 lakhs, in multiples of ₹1,000.
- Account Type: Single or joint (with spouse).
- Tax Benefits: Eligible for deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakhs.
- Interest Taxation: Interest earned is taxable; TDS applies if interest exceeds ₹50,000 annually.
- Premature Withdrawal: Permitted with penalties:
- Before 1 year: No interest payable.
- After 1 year but before 2 years: 1.5% of deposit deducted.
- After 2 years: 1% of deposit deducted.
Eligibility Criteria
- Age:
- 60 years or above.
- 55–60 years for individuals who have opted for Voluntary Retirement Scheme (VRS) or superannuation, provided the account is opened within one month of retirement benefits receipt.
- 50–60 years for retired defense personnel, subject to the same condition as above.
- Residency: Must be an Indian resident.
- Exclusions: Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible.
How to Open an SBI SCSS Account
- Visit: Your nearest SBI branch.
- Application: Fill out Form A (available at the branch or SBI website).
- Documents Required:
- Proof of Identity (e.g., PAN card, Aadhaar).
- Proof of Address (e.g., utility bill, Aadhaar).
- Proof of Age (e.g., birth certificate, PAN card).
- Passport-sized photographs.
- Deposit: Submit the investment amount via cash (up to ₹1 lakh) or cheque/demand draft (above ₹1 lakh).
Interest Payout Schedule
Interest is credited quarterly on the first working day of:
- April
- July
- October
- January
Summary
The SBI SCSS is a prudent choice for senior citizens seeking a safe investment with regular income. Its government backing, attractive interest rate, and tax benefits make it a compelling option for retirement planning.
