PNB Senior Citizen Saving Scheme - PNB SCSS Details

There is a time in everyone's life when they have to retire after a certain age which is fixed for retirement, but they only retire from work, not from life. So to live the life an individual plans or desires to live, they should have proper retirement strategy. By recognising these gaps in planning and strategising, the Government of India has introduced the Senior Citizen Saving Scheme, and Punjab National Bank (PNB) is  selling this product to their senior citizen's customers.

What is PNB Senior Citizen Saving Scheme?

Punjab National Bank offers a Senior Citizen Saving Scheme to retired customers seeking the plan or scheme through which they can save and earn money for their daily expenses. It ensures post-retirement financial security for senior citizens of India. SCSS is an initiative taken by the Government of India and it is available through  Punjab National Bank (PNB) for eligible people. Attractive interest rates are provided to senior citizens against their investment in this scheme. PNB SCSS gives you the flexibility to open a joint or individual account with your spouse, depending on your needs.

Key Features of PNB SCSS

Before making any kind of investment everyone has a right to know the features of that investment Scheme. PNB Senior Citizen Saving Scheme comes with good features which attract senior citizen customers to invest in this scheme.

Minimum and Maximum Investment

Note that the deposits have to be in multiples of Rs 1,000

Tenure

Investment tenure of this scheme is for 5 years which can be extended for 3 more years but for one time only.

Interest Rates

Payout Details

Interest shall be payable from the date of deposit to 31st March/ 30th June/ 30th September/ 31st December on 1st working day of April/ July/ October/ January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/ July/ October/ January.

Tax Benefits

Under this scheme tax benefits of section 80C will be given to the account holder.

Eligibility

One should be a retired resident of India.

Entry Age 

• 60 years
• Those people who have retired on superannuation or under a voluntary or special voluntary scheme can apply at the age of 55 years.
• A person who has retired from Defence Services (excluding Civilian Defence Employees) shall be eligible to invest upon attaining the age of 50 years subject to the fulfillment of specified conditions.

How to Open a PNB SCSS Account?

You have to open a savings account along with a Senior Citizen Saving Scheme (SCSS) account and the following documents are needed at the time of account opening.

• An account opening form is provided by the bank.
• Passport size photograph- 2
• Identity proof and address proof such as PAN card, passport, ration card, Aadhar card, driving license, and voter identity card.
• Xerox copy of Aadhar card to be submitted at the time of account opening.
• Original identity proof will be required for verification of identity at the time of account opening.

Step-by-Step Process

• Visit your nearest Punjab National Bank branch
• Request for a Senior Citizen Savings Scheme account opening form.
• Fill in the required details accurately.
• Attach your passport-size photograph and all necessary documents.
• Submit the form and the documents to the bank officer 
• Once the bank verifies your documents, make the initial deposit per the scheme's requirement.
• After the deposit, your PNB SCSS account will be activated.

Understanding Exit Options from SCSS

Before investing money in any of the schemes one should know the exit policy or withdrawal policy of that scheme.

Premature Closure

In any case of emergency or need of money, one can close their SCSS account before maturity but there is a penalty that has to be paid by the account holder.

Benefits of PNB SCSS for Senior Citizens

Punjab National Bank Senior Citizen Saving Scheme(SCSS) has a different type of benefits which attracts senior citizens customers to invest in this scheme.

• Financial Security
  This scheme offers financial security to senior citizens who open an account under this scheme after their retirement. Senior citizens enjoy a financially secure life after retirement.
  
  
• Regular Income Source
  There are regular income benefits under this scheme in which interest is given on the amount invested by the senior citizens' work as a regular income for them. This helps with their daily living expenses.
  
  
• High Interest rate
  A higher interest rate is given on this scheme compared to other schemes available in options.

Conclusion

The Punjab National Bank Senior Citizen Saving Scheme is a wise financial choice for senior citizens in India. It offers an impressive interest rate, a regular income source, and tax benefits. Considering the scheme's features, benefits, and reliability, you'll find it essential in securing your post-retirement financial future. It's time to make an informed decision for a comfortable tomorrow.

FAQs

Ques 1. What is the interest rate of senior citizen savings scheme in PNB?

Ans. The interest rate of the senior citizen saving scheme in PNB is 8.20%.

Ques 2. Is SCSS interest tax free?

Ans. By investing in SCSS one is qualified for tax exemption under section 80C up to 1,50,000 for every financial year till maturity of the scheme.

Ques 3. Is the SCSS interest rate fixed for 5 years?

Ans. Yes the interest rate which is fixed during the time of investment is fixed till maturity of that investment.

Ques 4. Can I invest 30 lakhs in SCSS?

Ans. Yes according to the new rule of the Government of India you can invest 30 Lakhs in the SCSS.

Ques 5. What is premature closure of SCSS in PNB?

Ans. One can close their SCSS account before maturity after completion of 1 year from the date of account opening with the penalty according to the terms and conditions.