SBI Senior Citizen Savings Scheme

Features of SBI Senior Citizen Savings Scheme (SCSS)

The Senior Citizens Savings Scheme SBI is a government-backed savings option designed to offer financial security and stable returns to individuals aged 60 and above. Here are the key features:

• Safe & Secure Investment
  • Being a Government of India-backed scheme, Senior Citizen Savings Scheme SBI ensures complete capital protection and guaranteed maturity benefits.
  • This makes it one of the safest investment options for senior citizens.
• Attractive Interest Rates
  • Current SBI Senior Citizen Saving Scheme Interest Rate (Q2 FY 2025-26): 8.2% per annum.
  • Interest Calculation: Compounded quarterly.
  • Payout Dates: Interest credited on April 1, July 1, October 1, and January 1.
  • Returns depend on the deposited amount, tenure, and interest rate applicable at the time.
  • The senior citizen saving scheme SBI interest rate is revised every quarter by the government, helping investors benefit from favorable rates.
• Flexible Deposit Options
  • Minimum Investment: ₹1,000
  • Maximum Investment: ₹30 lakh (in multiples of ₹1,000)
• Deposit Mode:
  • Cash (up to ₹1 lakh)
  • Cheque/DD (for deposits above ₹1 lakh)
• Maturity & Extension Rules
  • Tenure: 5 years
  • Extension: Can be extended once by 3 years, within the first 12 months after maturity.
  • Latest Update: Withdrawals under Senior Citizen Savings Scheme SBI have been made tax-free w.e.f. August 29, 2024.
• Account Management
  • Multiple Accounts: Individuals can open more than one Senior Citizen Savings Scheme SBI account, including joint accounts with their spouse.
  • Transfer Facility: Accounts can be easily transferred between post offices and banks across India.
• Premature Closure Rules

  Withdrawals are permitted anytime through Form-2, subject to penalties:

  • Before 1 year: Entire interest earned will be recovered.
  • After 1 year but before 2 years: 1.5% of the principal deducted.
  • After 2 years: 1% of the principal deducted.

  Note: Multiple withdrawals from the same account are not allowed.

• Nomination Facility: Investors can nominate one or more nominees while opening the account or update them later.
• Tax Benefits
  • Section 80C Deduction: Up to ₹1.5 lakh per year.
  • TDS Applicability:
    • Interest above ₹50,000 per financial year for senior citizens is subject to TDS.
    • For non-senior citizens, the threshold is ₹10,000.
• Monthly Income Estimation: At the current SBI Senior Citizen Saving Scheme interest rate of 8.2% p.a., an investment of ₹30 lakh generates an estimated income of ₹20,500 per month.

NOTE: Non-Resident Indians (NRI), Overseas Citizens of India (OCI), Persons of Indian Origin (PIOs), and Hindu Undivided Family (HUF) are not eligible to subscribe to the Senior Citizen Savings Scheme (SCSS).

How to Apply for Senior Citizen Savings Scheme SBI? 

You can open a Senior Citizen Savings Scheme account in SBI Bank by following these steps:

1. Offline Method (Branch Visit)

   Visit the nearest SBI branch, collect and fill out Form A (SCSS application). Submit the completed form along with identity, age proof, and the deposit amount in cash or cheque. The bank will process your application and open the account.

2. Online Method (If Available)

   • Log in to SBI’s Internet Banking or YONO app.
   • Navigate to the SCSS account opening section (if enabled).
   • Fill in the required details, upload documents, and make the deposit.

   Note: Online Senior Citizen Savings Scheme SBI account opening is subject to availability on SBI’s digital platforms. Check with your branch or on the SBI portal for updates.

Interest Rate of SBI Senior Citizen Savings Scheme

The SBI Senior Citizen Savings Scheme offers attractive and secure returns for retirees. The current interest rate is 8.20% per annum (Q2: July-September 2025), announced by the Government of India. Once invested, the applicable Senior Citizen Savings Scheme SBI interest rate remains fixed throughout the 5-year tenure, ensuring stable income and guaranteed financial security for senior citizens.

List of SCSS Interest Rates in Previous Quarters

Eligibility Criteria for Senior Citizen Saving Scheme SBI

• Age:
  • Minimum age: 60 years
  • 55-60 years: Eligible if retired under VRS or superannuation
  • 50-60 years: Eligible for retired defence personnel
• Residency: Must be an Indian resident.
• Account Type: Single or joint with spouse (age based on primary holder)
• Not Eligible: NRIs and members of Hindu Undivided Families (HUFs)

Documents Required to Open an SBI Senior Citizen Savings Scheme Account

To open a Senior Citizen Savings Scheme SBI account, visit any SBI branch and submit the following:

• Form A (Downloadable from the SBI website)
• Identity proof (PAN, Passport, Voter ID, Aadhaar)
• Address proof (Aadhaar, Passport, Ration Card, or recent utility bill)
• Age proof (Birth Certificate, PAN, Passport, Voter ID, Driving Licence)
• One passport-sized photo

Taxability of Senior Citizen Savings Scheme SBI

• You can avail of tax benefits under Section 80C of the IT Act, 1961, of up to ₹1.5 Lakhs under the SBI Senior Citizen Savings Scheme.
• The interest you can earn from your Senior Citizen Savings Scheme SBI account is completely taxable. 
• If the interest earned through this scheme in one financial year is more than ₹50,000, then it will attract Tax Deduction at Source (TDS).

Comparison Between Fixed Deposit and Senior Citizen Savings Scheme SBI

The State Bank of India has announced a special FD scheme for senior citizens. This scheme is different from the Senior Citizen Savings Scheme of SBI in many aspects, which are as follows:

*As of August 2025

Senior Citizen Savings Scheme SBI Premature Closure

Senior Citizen Savings Scheme SBI allows for premature closure, but there are penalties depending on how long you've held the account:

• Less than 1 year: If you close the account before one year, you'll forfeit any interest earned, and it will be deducted from your principal amount.
• Between 1 and 2 years: A penalty of 1.5% of the deposit amount is charged.
• After 2 years but before 5 years: The penalty reduces to 1% of the deposit amount.

Conclusion

The SBI Senior Citizen Savings Scheme offers senior citizens a reliable, government-backed investment with assured returns and regular quarterly income. It provides a perfect blend of safety, attractive interest rates, and tax benefits, making it an excellent choice for retirees seeking financial stability and peace of mind during their retirement years.