The PNB Senior Citizen Saving Scheme is a specialised savings scheme designed for senior citizens in India, offered by Punjab National Bank. The scheme is ideal for investors looking for a safe investment option, offering higher interest rates and other benefits. This scheme ensures a regular income in post retirement years, enabling a financially stable life.
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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))
Investment Amount: The minimum lump sum investment amount for this scheme is ₹ 1000, and the maximum investment limit is ₹ 30 lakhs. The investment amount must be made in multiples of ₹ 1000.
Tenure: The tenure of PNB Senior Citizen Saving Scheme is 5 years. The scheme can be extended for another 3 years on maturity by submitting a request to the bank.
Interest: This savings scheme offers higher interest rates compared to regular savings schemes and fixed deposits. Currently, the PNB SSCS interest rate is 8.2%. Interest is payable on a quarterly basis on the 1st of every April, July, October, and January.
Joint Account Option: As per the Senior Citizen Saving Scheme PNB, the account can be opened individually, or jointly with a spouse.
Nomination: The account holder can nominate one or more persons to receive the proceeds of the account in case of the account holder's demise.
Premature Withdrawal: Premature withdrawal of the deposit is allowed after the completion of one year, subject to certain conditions:
1-2 Years of Account: Penalty at 1.5% of remaining balance
>2 Years of Account: Penalty at 1% of remaining balance
After completing the 5-year term and entering the 3-year extension:
Within the first year of extension: 1% penalty on the deposit.
After the first year of extension: No penalty.
Eligibility for PNB Senior Citizen Saving Scheme
To be eligible for the PNB Senior Citizen Saving Scheme, the following eligibility criteria must be met:
The applicant must be a citizen of India.
Individuals who have completed 60 years of age.
Individuals who have retired on superannuation or under a voluntary or special voluntary scheme, after completing 55 years of age.
Retired personnel from the Defense Services who have reached the age of 50.
Note: Hindu Undivided Families (HUFs) & NRIs are not eligible for this scheme.
Interest Rate for PNB Senior Citizen Saving Scheme
The history of SCSS interest rates, including the updated rate for the quarter of April to September, is as follows:
Quarters
Rate of Interest
(FY 2025-26) April to March
8.20%
(FY 2023-24) April to March
8.20%
(FY 2022-23) January to March
7.40%
(FY 2022-23) October to December
7.40%
(FY 2022-23) July to September
7.40%
(FY 2022-23) April to June
7.40%
(FY 2021-22) January to March
7.40%
Note: The interest rate for the Senior Citizen Savings Scheme is subject to change for different quarters.
To open a savings bank account and an SCSS account, you have to provide certain documents at the branch counter. Follow these steps to open your PNB SCSS account:
Submit a duly filled application form
Attach two passport-sized photos
Provide required documents like copy of passport, PAN card, or declaration form No. 60, Aadhaar card
Deposit principal into your account
Once the application process is complete, the account becomes operational in a short period. While you can follow these steps at PNB’s branch, you can also do it online with ease.
Document Required to Open PNB SCSS Account
To open a Senior Citizen Saving Scheme account PNB, you will need to submit the following general documents:
Age proof (Birth Certificate, Voter ID Card)
Identity proof (Aadhaar Card, Passport etc.)
Address proof (Aadhaar Card, Utility Bill, Bank Account Statement, etc.)
Form 60
Passport-size photographs
Account opening form
Retirement Proof
Bank Account details for deposits
Taxability Under PNB Senior Citizen Saving Scheme
PNB Senior Citizen Saving Scheme is taxable under the Income Tax Act, 1961.
Tax Deducted at Source (TDS) is applicable if the interest earned exceeds the specified threshold limit.
If your SCSS account's annual interest income exceeds Rs. 50,000, 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.
For Tax Exemption, submit Form 15H with ITR (if taxable income falls within basic tax exemption limits)
PNB SCSS investment is eligible for tax benefits under section 80C, with a deduction limit of Rs. 1.5 lakh per annum.
Tax laws are subject to change.
PNB Senior Citizen Savings Scheme vs Fixed Deposit
Factors
Senior Citizen Savings Scheme
Fixed Deposit
Eligibility
Senior Citizens
Anyone
Interest Rate
7.9%-8.2% p.a.
3.00%-6.50% p.a.
Tenure
5 years
7 days-10 years
Taxation
Taxable income
Taxable
Maximum Deposit Limit
No upper limit (bank-specific)
Rs. 30 lakhs per account
Safety
Depends on bank’s credibility
Safe; Government-backed
FAQs
What is the current PNB SCSS interest rate?
For the current quarter (April, 2025 to September, 2025), the rates are 8.2%. The Government revises interest rates quarterly.
Is it possible to open a joint account under the Senior Citizen Saving Scheme PNB?
Yes, it is possible to open a joint account under PNB Senior Citizen Savings Scheme. The account can be jointly held by the senior citizen and their spouse or any other family member. However, only one person can be designated as the primary account holder.
Is premature withdrawal of funds allowed in the PNB Senior Citizen Saving Scheme?
Yes, premature withdrawal of funds is allowed under PNB Senior Citizen Savings Scheme, subject to some penalty.
Is Aadhaar necessary to open a PNB SCSS account?
Yes, Aadhaar is necessary to open a PNB SCSS account.
Is PAN mandatory to open a PNB SCSS account?
Yes, PAN is mandatory to open a PNB SCSS account.
˜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 01-11-2025
^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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