Canara Bank Senior Citizen Scheme

Canara Bank Senior Citizen Scheme is a special savings account plan offered to a large customer base of the Canara Bank. This scheme is designed exclusively for senior citizens aged 60 years and above, providing them with numerous benefits to meet their financial needs.

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Features of Canara Bank Senior Citizen Schema

This scheme offers a wide range of benefits to senior citizens, including higher interest rates, tax benefits, and ease of access.

Let's take a closer look at some of the key features of the Canara Bank Senior Citizen Scheme:

Minimum deposit for the investment scheme is Rs 1000/-
Maximum deposit allowed is Rs 30,00,000/-
Scheme maturity duration of 5 years and can be extended up to 3 years
Interest is compounded yearly
Senior citizens can prematurely withdraw their fixed deposit amount
Facility of nomination is available for all – a senior citizen can nominate an individual to receive the deposit amount after their demise

Eligibility for Canara Bank Senior Citizen Scheme

An individual residing in India, either alone or with their spouse, is eligible Canara Bank Senior Citizen Scheme, and he or she should also meet the following eligibility criteria:

Senior citizens of age of 60 or above
Individuals between the ages of 55 and 60 (as per scheme guidelines)
Retired personnel from the Defense Services who have reached the age of 50

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

Starting from 1 April 2023 until there is a change, the interest rate will be 8.20% per year, and interest will be paid quarterly. The interest rate for the Senior Citizen Savings Scheme is subject to change during different quarters of the year.

Given below is the history of interest rates offered to its customers in the recent period:

Quarters	Rate of Interest
(FY 2022-23) January to March	7.4%
(FY 2022-23) October to December	7.4%
(FY 2022-23) July to September	7.4%
(FY 2022-23) April to June	7.4%
(FY 2021-22) January to March	7.4%
(FY 2021-22) October to December	7.4%
(FY 2021-22) July to September	7.4%
(FY 2021-22) April to June	7.4%
(FY 2020-21) January to March	7.4%
(FY 2020-21) October to December	7.4%
(FY 2020-21) July to September	7.4%
(FY 2020-21) April to June	7.4%
(FY 2019-20) January to March	8.6%
(FY 2019-20) October to December	8.6%
(FY 2019-20) July to September	8.6%
(FY 2019-20) April to June	8.7%
(FY 2018-19) January to March	8.7%
(FY 2018-19) October to December	8.7%
(FY 2018-19) July to September	8.3%
(FY 2018-19) April to June	8.3%

How to Apply for SCSS?

There are two ways to apply for SCSS by Canara Bank:

Online – Using Net Banking/Mobile Banking
Offline – At Bank Branches

Documents Required

To open a Canara Bank Senior Citizen Saving Scheme account, you will need to submit the following documents:

Identity Proof: Passport, Voter ID Card, PAN Card, Aadhaar Card, Driving License
Address Proof: Aadhaar Card, Utility Bill (Electricity Bill, Water Bill, Gas Bill, Telephone Bill, etc.), Bank Account Statement
Age Proof: Birth Certificate, Voter ID Card

Taxability

Canara Bank Senior Citizen Saving Scheme is taxable under the Income Tax Act, 1961.
SCSS investment is eligible for tax benefits under section 80C, with a deduction limit of Rs. 1.5 lakh per annum.
Deduction under section 80TTB of up to Rs. 50,000 is available on interest earned from SCSS investment, as well as on interest earned on savings accounts and fixed deposits.

Senior Citizen Savings Scheme vs Fixed Deposit

Factors	Senior Citizen Savings Scheme	Fixed Deposit
Interest Rate	7.4% - 7.9% p.a.	3.00% - 6.50% p.a.
Lock-in period	5 years	7 days-10 years
Taxation	Taxable income	Taxable
Premature Withdrawal	After 1 year (1.5% charge)	1%
Eligibility	Senior Citizens	Anyone
Risk Involved	Low	Low

Premature withdrawal

You can withdraw your money before the account maturity date after one year of opening. If you proceed with withdrawal, you will be charged a fee of 1.5% of the total deposited amount after one year. For withdrawals after two years, you will be charged a 1% penalty.

FAQs

How can customers open an account under the scheme?

Customers can visit their nearest Canara Bank branch to open an account under the Canara Bank Senior Citizen Saving Scheme. They need to fill out an application form and provide necessary documents such as age proof, identity proof, and address proof.
Can non-resident Indians (NRIs) invest in the scheme?

No, non-resident Indians (NRIs) are not eligible to invest in the Canara Bank Senior Citizen Saving Scheme.
Is there any penalty for premature withdrawals?

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.

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*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
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^^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).

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