Why SBI Senior Citizen Saving Scheme Is A Must For You?

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 programme gaining popularity in recent years. For anyone over the age of 60, SBI offers a Senior Citizens Savings Scheme (SCSS) which is a government-sponsored savings scheme. While it has a defined maturity date, the account holder can choose to prolong it.

This plan provides retirees with a complete package as well as solid financial options. Among other things, this plan provides tax benefits, monthly dividends, and capital protection. If an individual has chosen voluntary retirement, the minimum age to enrol in this plan is 60 years old. However, an individual can enrol in this scheme at the age of 55 if they select it within a month after receiving their retirement income. To know more about SBI Senior Citizens Savings Scheme, read on.

Features of SBI Senior Citizen Savings Scheme

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

1. Interest Rate

Every individual wants to know how much money they will make from their investment. It's one of the most intriguing truths anyone can ever discover. When an individual knows how much money they will make, they can plan their expenditures accordingly. As a result, understanding how much a senior person 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. The yearly interest rate on SBI SCSS is presently 8.6% p.a.

2. Deposits & Withdrawals

An SBI Senior Citizens Savings Scheme account may be funded with a single deposit. This deposit must be made in thousands of rupees and must not exceed Rs.15 lakhs, as previously specified. The user 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 can extend 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, one or more individuals can be nominated. Individuals can do so by filling out Form C, which must be delivered to the branch together with the passbook. At any moment, an individual can amend or remove their respective nominations.

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 respective 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. Therefore, the account will be considered mature. After maturity, the account can be closed at any point of time, and the respective depositor is accountable 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 - An annual interest rate of 9.3% is offered by the SBI Senior Citizens Savings Scheme.
2. Type of Deposit – Deposits can be made only in cash (if the amount is less than Rs.1 lakh), demand draft (DD), or cheque.
3. Multiple Accounts - Individuals are allowed to register several accounts as long as the total amount of money deposited in all of them does not surpass Rs.15 lakh.
4. Nominees - An individual can have innumerable nominees. As there is no limit on the number of nominees an individual can have.
5. Joint Account - A joint account can be created by an individual and their spouse.
6. Extension – After maturity, an individual has the option of extending their respective SBI Senior Citizens Savings Scheme account for another 3 years.

Endnotes

It's understandable that retirees and those nearing retirement would be careful investors. They would prefer stability than taking a risk. 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 finances, one should always make well-informed decisions and judgments.

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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.