Know Everything About SBI Senior Citizen Savings Scheme Account

The State Bank of India or SBI has been in existence since 1955 and is one of India's main financial statutory entities. It provides a variety of financial products and services to its consumers, with its senior citizen savings programme garnering particular attention in recent years. A Senior Citizens Savings Scheme (SCSS) is a government-sponsored savings plan available under SBI for anyone over the age of 60. While it has a set maturity period, the account user has the option to extend it.
This plan presents a comprehensive offering as well as strong financial possibilities for retirees. This plan offers tax incentives, monthly dividends, and capital protection, among other things. The minimum age to enrol in this plan is 60 years old if the individual has chosen voluntary retirement; however, an individual can engage in this scheme at the age of 55 if they choose it within a month after getting their retirement income. To find out more on SBI Senior Citizens Savings Scheme, read on.

Features of SBI Senior Citizen Savings Scheme

Following are some features of SBI Senior Citizen Savings Scheme -

1. Interest Rate

Every individual wants to know how much money they can expect to gain from their investment. It's one of the most fascinating facts to learn. When one understands how much money they will make, they may plan their spending appropriately. As a result, knowing how much a senior citizen would earn under the SBI Senior Citizens Savings Scheme is crucial. The interest rate on the SBI Senior Citizens Savings Scheme is 8.6% p.a. for the fiscal year 2016-2017. All SBI Senior Citizens Savings Scheme account holders get interest on a quarterly basis. The annual SBI SCSS interest rate is now 8.6% p.a. For example, if an individual invests Rs.10,000, the interest an individual would get will be Rs.217.5 (Rs.10,000*2.175/100), according to this computation.

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2. Deposits & Withdrawals

A single deposit can be made into an SBI Senior Citizens Savings Scheme account. As previously stated, this deposit must be made in thousands of rupees and must not exceed Rs.15 lakhs. A year after creating the account, the respective will be able to withdraw the funds with a penalty.

3. Account Renewal

After the 5 year maturity term, an individual can extend their Senior Citizens Savings Scheme account with SBI for another 3 years by filling out Form B within one year of the maturity date.

4. Nomination

One or more persons can be nominated during the account opening process or at any point after the account has been created but before it is closed. An individual can do so by submitting an application on Form C, which must be brought to the branch with the passbook. This nomination can be changed or withdrawn at any time.

5. Account Maturity

After 5 years from the account opening date, the deposit office will pay the deposit amount. When the depositor submits the passbook together with a written application on Form E, the deposit will be paid. The depositor's account will be regarded as matured if the respective individual 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 point after maturity, and the depositor will be responsible for the interest.

Benefits Of SBI Senior Citizens Savings Scheme

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

1. Interest on Deposit - The SBI Senior Citizens Savings Scheme offers an annual interest rate of 9.3%.
2. Type of Deposit – Deposits can be made in cash (if the amount is less than Rs.1 lakh), demand draught (DD), or cheque.
3. Multiple Accounts - Individuals are permitted to open multiple accounts as long as the total deposits in all of them do not exceed Rs.15 lakhs.
4. Nominees - There is no limit to how many nominees an individual may have.
5. Joint Account - An individual and their spouse can create a joint account.
6. Extension – After maturity, an individual can prolong their SBI Senior Citizens Savings Scheme account for another 3 years.

Endnotes

It's reasonable that retirees and those on the verge of retiring are cautious investors. Instead of taking chances, they would want stability. As a result, individuals should keep in mind that there is no such thing as a "risk-free" investment. Even the safest investment options have certain risks associated with them. As a consequence, when it comes to investing, one should constantly make well-informed selections and choices.

Also Read: Senior Citizens Savings Scheme - Eligibility, Features, Details, etc

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.