Features and Benefits Of SBI Senior Citizen Saving Scheme You Must Be Aware Of

The State Bank of India, or SBI, has been around since 1955 and is one of India's most important financial institutions. It offers a wide range of financial goods and services to its customers, with its senior citizen savings scheme gaining popularity in recent years. 

A Senior Citizens Savings Scheme (SCSS) is a government-sponsored savings plan for any individual over the age of 60 that is offered through SBI. While it has a defined maturity date, the respective account holder can choose to prolong it.

For retirees, this plan offers a complete package as well as solid financial options. Tax benefits, monthly dividends, and capital protection are just a few of the benefits offered by this plan. If an individual has chosen voluntary retirement, the minimum age to join this plan is 60 years old. However, an individual can join at the age of 55 if they select it within a month of receiving their retirement income. To know more about SBI Senior Citizens Savings Scheme, read on.

Features & Benefits of SBI Senior Citizen Savings Scheme

Following are some listed features of SBI Senior Citizen Savings Scheme -

1. Interest Rate

Every individual intends to know the amount they will make from their investment. It's one of the most interesting truths anyone can ever discover. When an individual knows how much money they will make, anyone can plan their expenditures accordingly. As a result, understanding how much a senior citizen may earn through the SBI Senior Citizens Savings Scheme is critical. For the fiscal year 2016-2017, the interest rate on the SBI Senior Citizens Savings Scheme is 8.6% p.a. Quarterly interest is paid to all SBI Senior Citizens Savings Scheme account holders. For example, if an individual invests Rs.10,000, the interest earned will be Rs.217.5 (Rs.10,000*2.175/100), according to this calculation.

2. Deposits & Withdrawals

A SBI Senior Citizens Savings Scheme account may be funded with a single deposit. This deposit should always be made in thousands of rupees and should not exceed Rs.15 lakhs, as previously specified. The respective individual will be allowed to withdraw the funds with a penalty one year after opening the account.

3. Account Renewal

Within one year of the maturity date, an individual has the option of extending their Senior Citizens Savings Scheme account with SBI for another three years by filling out Form B.

4. Nomination

During the account opening procedure or at any time after the account has been opened but before it is closed, the respective account holders can nominate one or two individuals. Account holders can do so by filling out Form C, which must be delivered to the branch together with the passbook. At any moment, an account holder can amend or remove their nomination.

5. Account Maturity

The deposit office will pay the deposit amount 5 years after the account was opened. The deposit will be reimbursed if the depositor submits the passbook together with a written application on Form E. If the depositor does not close the Senior Citizens Savings Scheme account with SBI on maturity and does not even extend it, the account will be considered mature. After maturity, the account can be closed at any time, and the depositor is accountable for the interest.

Endnotes

It's understandable that retirees and those nearing retirement would be wary investors. They would prefer stability than taking chances. As a result, investors must remember that there is no such thing as a "risk-free" investment. Even the safest investing alternatives come with their own set of hazards. As a result, when it comes to investing, one should always make well-informed decisions and judgments.

Do read - Top 5 Features Of Pradhan Mantri Kisan Mandhan Yojana

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.