Bank of India Senior Citizen Savings Scheme 

Eligibility to Open SCSS at Bank of India

The eligibility criteria for opening an SCSS account at Bank of India are mentioned below:

• Applicants aged 60 years or above are eligible for the Senior Citizen Savings Scheme. 
• Those aged 55 years or above but below 60 years who have retired on superannuation or otherwise may open an account, subject to the applicable conditions.
• Retired personnel of the Defence Services may open an account from the age of 50 years, subject to the applicable rules.
• The account can be opened either individually or jointly with a spouse.
• Eligible retirees aged 55 years or above but below 60 years must open the account within three months from the date of receipt of retirement benefits and provide the prescribed proof of the date of disbursal and retirement details.
• Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) cannot open an SCSS account.
• Applicants must provide PAN and the required age, identification and address proof documents as applicable under the prevailing KYC requirements.

Key Features of Bank of India SCSS

Bank of India Senior Citizen Savings Scheme has the following features:

• Interest Rate: The SCSS interest rate is 8.20% p.a. for July to September 2026. The Government of India notifies the rate quarterly. 
• Interest Payout: Interest is payable quarterly and may be credited to the account holder's savings account as authorised, subject to the applicable rules.
• Easy Transfer: An SCSS account can be transferred from one authorised bank or post office to another. BOI also allows an existing SCSS account to be transferred to any Bank of India branch, subject to the applicable transfer procedure. 
• Nomination: Nomination facility is available for an SCSS account. Nomination can be registered, changed or cancelled during the tenure of the account, subject to the applicable rules. BOI provides separate forms for cancellation or variation of nomination.
• Premature Closure: BOI allows premature closure subject to appropriate SCSS restrictions and deductions. The amount payable on premature closure is dependent on the time for which the account has been opened.
• Spouse Accounts: Eligible spouses can have separate SCSS accounts and may also open joint accounts with each other, subject to the applicable scheme rules. The ₹30 lakh maximum applies to the eligible depositor's aggregate SCSS deposits.
• Multiple Accounts: A depositor may operate more than one SCSS account, provided the total deposits across all accounts do not exceed the prescribed maximum limit. The account-opening restrictions prescribed under the SCSS rules also apply. 
• Withdrawals: The scheme does not provide for multiple partial withdrawals. Premature closure is permitted subject to the prescribed conditions and deductions.

Tax Implications of Senior Citizen Savings Scheme

Eligible SCSS deposits qualify for deduction under Section 123 read with Schedule XV of the Income-tax Act, 2025, subject to the applicable conditions and the ₹1.5 lakh aggregate deduction limit. The deduction under Section 123 is not available under the new tax regime under Section 202. 

The interest earned on the account is taxable and can be subject to TDS whenever the interest earned crosses the threshold limits. Eligible resident senior citizens may furnish Form 121 for a declaration of nil tax liability, subject to the prescribed conditions, to seek non-deduction of Tax Deducted at Source (TDS) on eligible payments.

Bank of India SCSS vs Other Investment Options 

Bank of India offers SCSS and Fixed Deposits (FDs) as savings and investment options. SCSS is open to qualifying senior citizens and pays quarterly interest for an initial period of 5 years and can be renewed for further periods of 3 years as per the scheme guidelines. The interest rate is notified by the Government of India. 

BOI FDs provide many options for interest distribution such as monthly, quarterly, etc. and tenures. Extra interest is also available to senior persons on suitable term deposits. The selection is based on income and tenure conditions.