SBI Senior Citizen Savings Scheme

The SBI Senior Citizen Savings Scheme (SCSS) is a government-backed savings scheme offering an interest rate of 8.2% p.a. It is designed for individuals aged 60 years and above. It provides a safe investment option with regular quarterly interest payouts and tax benefits, making it ideal for retirees seeking financial security and stable returns.

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Features of SBI Senior Citizen Savings Scheme (SCSS):

The Senior Citizens Savings Scheme (SCSS) 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:

  1. Secure Investment

    SCSS is supported by the Government of India, ensuring capital protection and guaranteed returns upon maturity.

  2. Attractive Interest Rates

    • Current Rate: For Q1 of FY 2025-26, the interest rate stands at 8.2% p.a.
    • Interest Calculation: Interest is compounded quarterly.
    • Payout Dates: Credited quarterly on April 1, July 1, October 1, and January 1.
    • Returns depend on the tenure, rate, and principal amount.
  3. Flexible Deposit Options

    • Minimum Deposit: ₹1,000
    • Maximum Deposit: ₹30 lakh (in multiples of ₹1,000)
    • Mode of Deposit:
      • Cash: Up to ₹1 lakh
      • Cheque: For amounts above ₹1 lakh
  4. Maturity & Extension

    • Tenure: 5 years
    • Extension: Can be extended once by 3 years within one year of maturity
    • New Update: Withdrawals will be tax-free from August 29, 2024
  5. Account Management

    • Multiple Accounts: Individuals can hold multiple accounts, including joint accounts with a spouse.
    • Transfer Facility: Accounts can be transferred between post offices and banks, and across locations in India.
  6. Premature Closure Rules

    Withdrawals are allowed anytime via Form-2, but with penalties:

    • Before 1 year: Entire interest recovered
    • After 1 year but before 2 years: 1.5% deduction on principal
    • After 2 years: 1% deduction on principal

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

  7. Nomination Facility

    Nominees can be appointed at the time of account opening or added later.

  8. Tax Benefits

    • Section 80C: Tax deduction on investments up to ₹1.5 lakh
    • TDS Deduction:
      • If total annual interest exceeds ₹50,000 (for senior citizens)
      • ₹10,000 (for individuals below 60)
  9. Estimated Monthly Income

    At the current rate of 8.2% p.a., an investment of ₹30 lakh generates a monthly income of ₹20,500 for investors.

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 your nearest SBI branch.
    • Collect and fill out Form A (SCSS application form). You can also download it from the SBI website.
    • Attach required documents:
      • Proof of Identity (e.g., PAN, Aadhaar)
      • Proof of Address (e.g., Aadhaar, utility bill)
      • Proof of Age (e.g., PAN, Birth Certificate)
      • One passport-sized photograph
    • Submit the completed form, documents, and the deposit amount (up to ₹30 lakh).
    • SBI will verify your application and open the SCSS 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 government of India declares Senior Citizen Savings Scheme SBI interest rates in advance before every quarter. The current interest rate is 8.20% p.a. for (Q1 April 2025-June 2025). 

The current SCSS interest rate of SBI will be applicable for the entire lock-in period of 5 years. 

List of SCSS Interest Rates in Previous Quarters

Year Rate of Interest (%)
Apr 01, 2017 - Jun 30, 2017 8.4%
Jul 01, 2017 - Sep 30, 2018 8.3%
Oct 01, 2018 - Jun 30, 2019 8.7%
Jul 01, 2019 - Mar 31, 2020 8.6%
Apr 01, 2020 - Sep 30, 2022 7.4%
Oct 01, 2022 - Dec 31, 2022 7.6%
Jan 01, 2023 - Mar 31, 2023 8%
Apr 01, 2023 - Mar 31, 2024 8.2%
Apr 01, 2024 - Mar 31, 2025 8.2%
Apr 01, 2025 - Jun 30, 2025 8.2%

Eligibility Criteria for Senior Citizen Saving Scheme SBI

  1. Age:
  • Minimum age: 60 years
  • 55–60 years: Eligible if retired under VRS or superannuation
  • 50–60 years: Eligible for retired defence personnel
  1. Residency: Must be an Indian resident.
  2. Account Type:
  • Single or joint (with spouse) accounts allowed
  • Eligibility is based on the primary account holder's age
  1. Not Eligible: NRIs and members of Hindu Undivided Families (HUFs)

Documents Required to Open an SBI Senior Citizen Savings Scheme Account

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

  • Form A (Downloadable from the SBI website)
  • KYC Documents, including:
    • Proof of Identity: PAN, Passport, Voter ID, or Aadhaar
    • Proof of Address: Aadhaar, Ration Card, Passport, or recent utility/bank statement (within 3 months)
    • Proof of Age: Birth Certificate, Passport, Voter ID, PAN, or Driving Licence
    • One passport-sized photograph

Taxability of Senior Citizen Savings Scheme SBI

  • You can avail of tax benefits under Section 80C of the IT Act, 1961, of up to Rs. 1.5 Lakhs under the SBI Senior Citizen Saving Scheme.
  • The interest you can earn from your SCSS account is completely taxable. 
  • If the interest earned through this scheme in one financial year is more than Rs. 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:

Feature Fixed Deposit (FD) Senior Citizen Savings Scheme (SCSS)
Interest Rate* Varies (typically 3.30% - 6.30% for SBI) 8.20%
Guaranteed by Bank Government of India
Tax benefit Qualify under Section 80C (depends on the bank) Qualifies under Section 80C
Interest Payout Maturity or periodic (depends on the option chosen) Quarterly
Investment Tenure Flexible (7 days to 10 years) 5 years (extendable by 3 years)
Liquidity Early withdrawal possible (penalty applies) Premature closure allowed (with interest penalty)
Minimum Investment Varies by bank (typically low) Rs. 1,000
Maximum Investment No limit (depends on the bank)  Rs. 30 lakh

*As of May 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 (SCSS) is a secure, government-backed investment for individuals aged 60+. It offers an attractive 8.20% interest rate, paid quarterly, ensuring stable income during retirement. With a five-year tenure, extendable by three years, and a maximum deposit of ₹30 lakhs, it provides financial stability. Tax benefits under Section 80C enhance its appeal. Overall, the Senior Citizen Savings Scheme SBI is a reliable option for senior citizens to protect savings, earn returns, and secure their retirement.

FAQs

  • What is the current interest rate for SCSS in SBI?

    As of Q1 FY 2025-26, the SCSS interest rate is 8.2% per annum, payable quarterly.
  • What is the tenure of the SBI SCSS account?

    The maturity period is 5 years, extendable by 3 more years by submitting an extension request within one year of maturity.

  • How to invest ₹30 lakhs in SBI SCSS?

    Visit an authorised bank or post office, fill out Form A, submit required KYC documents, and deposit ₹30 lakhs (in multiples of ₹1,000). The deposit can be made via cheque if the amount exceeds ₹1 lakh.
  • What happens to SBI SCSS after 5 years?

    After 5 years, the account matures. You can either withdraw the amount or extend the account for 3 more years by applying within 1 year of maturity.

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