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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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
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).
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%|
There are two ways to apply for SCSS by Canara Bank:
Online – Using Net Banking/Mobile Banking
Offline – At Bank Branches
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
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.
|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|
|Premature Withdrawal||After 1 year (1.5% charge)||1%|
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.
Past 10 Year annualised returns as on 01-12-2023
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per 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
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