Learn Everything There Is To Know About The SBI Senior Citizen Savings Scheme Account.
Updated On Jun 16, 2022
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A Senior Citizens Savings Scheme (SCSS) is a government-sponsored savings plan available via SBI for anybody over the age of 60. While it has a set maturity date, the account holder has the option to extend it. This plan provides a comprehensive bundle as well as excellent financial possibilities for retirees. This plan provides tax advantages, monthly dividends, and capital protection, to name a few advantages. The minimum age to join this plan if an individual has chosen voluntary retirement is 60 years old. Individuals can, however, join at the age of 55 if they want to do so within a month of receiving their retirement income. Continue reading to learn more about the SBI Senior Citizens Savings Scheme.
SBI Senior Citizen Savings Scheme Features and Benefits
The following are some of the benefits of the SBI Senior Citizen Savings Scheme:
1. Rate of Interest
Every person wants to know how much money they will gain from their investment. It's one of the most fascinating realities someone can ever learn. When a person understands how much money they will make, they may plan their expenses appropriately. As a result, it is vital to understand how much a senior person might earn through the SBI Senior Citizens Savings Scheme. The interest rate on the SBI Senior Citizens Savings Scheme is 8.6 percent per year for the fiscal year 2016-2017. All SBI Senior Citizens Savings Scheme account members receive quarterly interest.
2. Cash Deposits and Withdrawals
A single deposit can be made into an SBI Senior Citizens Savings Scheme account. This deposit should always be made in thousands of rupees and should not exceed the previously set limit of Rs.15 lakhs. One year after starting the account, the individual will be able to withdraw the funds with a penalty.
3. Renewal of Accounts
Individuals can prolong their Senior Citizens Savings Scheme account with SBI for additional three years by filling out Form B within one year of the maturity date.
4. Nomination
Account-holders can designate one or two persons during the account opening procedure or at any point after the account has been formed but before it is canceled. Account-holders can do so by completing Form C, which must be returned to the branch together with the passbook. An account holder can change or withdraw their nomination at any time.
5. Maturity of Accounts
The deposit office will refund the deposit amount five years after the account was created. If the depositor presents the passbook together with a written application on Form, the deposit will be repaid. The account will be declared mature if the depositor does not shut the Senior Citizens Savings Scheme account with SBI on maturity and does not even extend it. The account can be terminated at any moment after maturity, and the depositor is responsible for the interest.
Take Away
It's reasonable that retirees and those on the verge of retiring would be cautious investors. They would rather have stability than take chances. As a result, investors must realize that "risk-free" investments do not exist. Even the most secure investment options have their own set of risks. As a consequence, when it comes to investing, it is critical to make educated decisions and judgments.
Also read: Avoid Mistakes When Buying A Retirement Plan
