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SBI Senior Citizen Savings Scheme Features And Benefits

Updated On Mar 10, 2022

This plan provides a complete package 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 is 60 years old if an individual has chosen voluntary retirement. Individuals under the age of 55 can enroll if they do so within a month of getting their retirement salary.

SBI Senior Citizen Savings Scheme (SCSS)

SBI's Senior Citizen Savings Scheme is designed for senior people who desire to supplement their income with a secure investment. A retired person and his or her spouse can open a joint account and invest using cash, check, or demand draft. Retirement can be a frightening prospect. A person works their entire life and then wonders how to enjoy their retirement years. Many people believe that senior citizens have no role to play in investments at this stage of life, but this is not the case.

The majority of a senior citizen's savings are invested in FDs or other kinds of investing. While interest is a safe source of income, it does not provide a large sum of money, which is where programmes like the SCSS (Senior Citizens Savings Scheme) come in. The Senior Citizens Savings Scheme is a government-backed ultra-safe investment that is tax deductible, making it a great option for retired taxpayers.

Features & Benefits of SBI Senior Citizen Savings Scheme (SCSS)

1. Interest Rate

Everyone wants to know how much money they will make from their investment. It is one of the most fascinating facts someone can possibly learn. Anyone may plan their spending correctly if they know how much money they will make. As a reason, it is vital to know how much a senior citizen can earn through the SBI Senior Citizens Savings Scheme. The interest rate on the SBI Senior Citizens Savings Scheme is 7.4% p.a. for fiscal year 2021-2022. All SBI Senior Citizens Savings Scheme account members receive quarterly interest. 

2. Deposits & Withdrawals

An SBI Senior Citizens Savings Scheme account can be funded with a single deposit. As previously stated, this deposit should always be made in thousands of rupees and should not exceed Rs.15 lakhs. One year after starting the account, the individual will be able to withdraw the funds with a penalty. 

3. Account Renewal

An individual can extend their Senior Citizens Savings Scheme account with SBI for another three years within one year of the maturity date by filling out Form B within one year of the maturity date. This scheme has a five year lock-in period, which can be extended for another three years by the account holder.

4. Nomination

The respective account holders can nominate one or two individuals 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 and delivering it to the branch along with their passbook. An account holder can change or withdraw their nomination at any time.

5. Account Maturity

The deposit amount will be paid 5 years after the account was opened by the deposit office. If the depositor provides the passbook along with a written application on Form E, the deposit will be refunded. The account will be declared mature if the depositor does not close 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 is reasonable that retirees and those on the verge of retiring are apprehensive investors. They would rather have stability than risk. As a result, investors must keep in mind that no investment is completely risk free. Even the safest investment options have their own set of risks. As a result, when it comes to investing, it is critical to make informed decisions.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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