Canara Bank Senior Citizen Scheme is a special savings scheme offered to its customers by Canara Bank. This government-backed scheme enables senior citizens, aged 60 and above, to invest their money in lump sum and earn a regular income via attractive interest rates.
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under
10(10D))
Features and Benefits of Canara Bank Senior Citizen Scheme
The features offered by Canara Bank Senior Citizen Savings Scheme are:
Features
Details
SCSS Interest Rate
Higher interest rates compared to savings scheme Decided by the Ministry of Finance Periodically
Canara Bank SCSS Account Type
Single Account Holder Joint Account Holder (only with spouse)
Nomination Facility
Available (in favour of Resident Indian Citizens Only). Up to four individuals
Minimum Amount of Investment
Rs. 1,000
Maximum Amount of Investment
Rs. 30 Lakhs
Maturity Period
5 Years Extendable by 3 Years (upon requesting within 1 year from maturity)
Canara Bank SCSS Interest Rate 2025
8.20% p.a. (Applicable from 1st April 2025 until 30th September 2025)
Interest Payable
Quarterly
Premature Exit
Premature Withdrawal is allowed based on: a) <1 Year of Account: penalty on quarterly interest accumulated b) 1-2 Years of Account: Penalty at 1.5% of remaining balance c) >2 Years of Account: Penalty at 1% of remaining balance
Eligibility for Canara Bank Senior Citizen Scheme
The following eligibility criteria must be met to qualify for Senior Citizen Saving Scheme Canara Bank. The candidate:
Must be a citizen of India
Senior citizens aged 60 or above
Retired/ VRS/ Superannuation Employee, completed 55 years of age or above
Retired personnel from the Defense Services who have reached the age of 50
Spouse of Government employee who has attained the age of 50 and died in harness.
Please note that these exemptions do not apply to Non-Resident Indians (NRIs) or Hindu Undivided Families (HUFs).
Interest Rate for Canara Bank Senior Citizen Scheme
The history of SCSS interest rates, including the updated rate for the quarter of April to September, is as follows:
Year
Rate of Interest (%)
Jul 01, 2019 - Mar 31, 2020
8.60
Apr 01, 2020 - Sep 30, 2022
7.40
Oct 01, 2022 - Dec 31, 2022
7.60
Jan 01, 2023 - Mar 31, 2023
8.00
Apr 01, 2023 - Mar 31, 2024
8.20
Apr 01 2024 - Jul 31, 2024
8.20
Aug 01, 2024- Mar 31, 2025
8.20
Apr 01, 2025 to Sep 30, 2025
8.20
Documents Required for Canara Bank Senior Citizen Scheme
To open a Canara Bank Senior Citizen Savings Scheme account, the following documents are generally required:
Duly filled application form
Age proof (Aadhaar, PAN card, Driving License, or birth certificate)
Identity proof (Voter ID, Passport, Aadhaar, PAN card)
Address proof (Utility bill, Aadhaar, Electricity Bill, Water Bill, etc.)
Passport-size photographs
Retirement proof (For individuals between 55-60 years availing SCSS after retirement)
Bank details for interest payout
Taxability
The interest earned on your SCSS investment is taxable as per your income tax slab.
If the annual interest income from your SCSS account exceeds Rs. 50,000, Tax Deducted at Source (TDS) will be applicable.
For individuals less than 60 years of age, if the annual interest income from your SCSS account exceeds Rs. 10,000, Tax Deducted at Source (TDS) will be applicable. Tax laws are subject to change.
SCSS investment is eligible for tax benefits under Section 80C, with a deduction limit of Rs. 1.5 lakh per annum, subject to change.
Tax exemption process requires submitting Form 15H with ITR (if taxable income falls within basic tax exemption limits).
Tax laws are subject to change.
Canara Bank Senior Citizen Savings Scheme vs Fixed Deposit
While both the Senior Citizens' Savings Scheme (SCSS) and a bank Fixed Deposit (FD) are safe investment options that offer fixed returns, there are some distinct features in them, including :
Factors
Senior Citizen Savings Scheme
Fixed Deposit
Eligibility
Open to all; senior citizens get a higher rate
60+, Retired govt. employees (55+/50+)
Interest Rate
7.4% - 8.2% p.a.
3.00% - 6.50% p.a.
Maximum Deposit
Rs. 30 Lakhs
No Upper limit( bank-specific)
Lock-in period
5 years, 3-year extendable
7 days-10 years
Taxation
Taxable
Taxable
Premature Withdrawal
After 1 year (1.5% charge)
1%
Risk Involved
Low
Low
FAQs
Can Non-Resident Indians (NRIs) invest in the Canara Bank Senior Citizen Saving Scheme?
No, NRIs are not eligible to invest in the Canara Bank Senior Citizen Saving Scheme.
Is there any penalty for premature withdrawals in the Senior Citizen Scheme Canara Bank?
Yes, there is a penalty for premature withdrawals, and it varies depending on the duration of the investment.
What are the benefits of the Canara Bank Senior Citizen Saving Scheme?
The scheme offers attractive interest rates, tax benefits under section 80C of the Income Tax Act, 1961, and regular income through quarterly interest payouts.
What will be the share of the joint account holder in the deposit in a Canara Bank Senior Citizen Saving Scheme account?
The entire Canara Bank Senior Citizen Saving Scheme deposit amount in a joint account belongs to the first account holder only.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-10-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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