Know about SBI Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) is for citizens who are aged above 60 years. This scheme offers an interest rate of 8.6 per cent per annum. One can open senior citizen savings account with post offices banks such as State Bank of India (SBI). A depositor can hold more than one SCSS account, on one condition that deposits in all accounts taken together should not exceed the maximum limit of Rs. 15 lakh and provided that deposits are restricted to the retirement benefits or Rs. 15 lakh whichever is lower, as per the SBI's website- sbi.co.in.

Things to know about SBI Senior Citizen Savings Scheme (SCSS):

1. A person aged 60 years and above is eligible to open an SCSS account with SBI.

2. A person aged 55 years and above but less than 60 years, retired on superannuation can also open this account.

3. The retired personnel of defence services (excluding civilian Defence employees) can open SCSS account irrespective of the age limits. However, he/she must fulfil other specified conditions, as per SBI.

4. A depositor can open the account individually or jointly with a spouse. In case of a joint account, the age of the first applicant should fulfil the eligibility criteria to invest under the scheme. There is no age limit for the second applicant.

5. In an account under SCSS scheme, the whole amount of investment is attributed to the first applicant only.

6. In the SCSS account, there can be only one deposit in multiple of Rs. 1,000 where the maximum amount must not exceed Rs. 15 lakh.

7. If the amount of deposit is less than Rs. 1 lakh, the deposits can be made in cash.

8. The depositor is allowed to withdraw the deposit and close the senior citizen savings account at any time after the expiry of one year, on an application.

9. Account closed before the expiry of two years: An amount equal to one and a half per cent of the deposit is deducted, and the balance is paid to the depositor.

10. Account closed on or after the expiry of two years: An amount equal to one per cent of the deposit is deducted, and balance is paid to the depositor.

11. A depositor may extend the account for a period of more three years by making an application to the deposit office within one year after maturity.

12. TDS is applicable to the Scheme as interest payments have not been exempted from deduction of tax at source.