SBI Senior Citizen Savings Scheme

SBI Senior Citizen Savings Scheme (SCSS) is a specialized savings scheme offered by the State Bank of India designed specifically for senior citizens. It is a government-backed scheme that provides a secure and attractive investment option for individuals above 60 years of age at competitive SCSS interest rates.

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What is SBI Senior Citizen Savings Scheme (SCSS)?

The SBI Senior Citizen Savings Scheme (SCSS) is a savings scheme backed by the Government of India, which is specifically designed for senior citizens in India. The State Bank of India (SBI) offers this best investment option to provide senior citizens with a regular source of income and financial security during their retirement years.

Features of SBI Senior Citizen Savings Scheme (SCSS):

Some key features of the SBI Senior Citizen Savings Scheme (SCSS) are as follows:

Eligibility Details
Age
  • Individuals aged 60 years or more
  • Individuals between 55 and 60 years retired on superannuation or VRS
  • Retired defence personnel aged 50 years or older
Investment Limits
  • Minimum: Rs. 1,000
  • Maximum: Rs. 30 lakh (combined for all SCSS accounts)
Interest Rates 8.20% p.a. (compounded and credited quarterly)
Account Features
  • Single or joint account with spouse
  • Nomination of one or more beneficiaries
  • Initial deposit: cash (up to Rs.1 lakh), cheque, or demand draft
Maturity Period 5 years (extendable for 3 periods of 3 years each)
Tax Benefits Interest up to Rs.1.5 lakh per financial year qualifies for tax deduction under Section 80C

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).

Interest Rate of SBI Senior Citizen Savings Scheme

Senior Citizen Savings Scheme SBI interest rates are declared by the government of India in advance before every quarter. The applicable interest rate as of 1st April 2024 is 8.20% p.a., which was declared for the quarter from 1st April 2023 to 31st March 2024.

The current SCSS interest rate of SBI will be applicable for the entire lock-in period of 5 years. The Senior Citizen Savings Scheme SBI interest rate is payable every quarter.

List of SCSS Interest Rates in Previous Quarters

Year Rate of Interest (%)
Aug 02, 2004 - Mar 31, 2012 9.0
Apr 01, 2012 - Mar 31, 2013 9.30
Apr 01, 2013 - Mar 31, 2015 9.20
Apr 01, 2015 - Mar 31, 2016 9.30
Apr 01, 2016 - Sep 30, 2016 8.60
Oct 01, 2016 - Mar 31, 2017 8.50
Apr 01, 2017 - Jun 30, 2017 8.40
Jul 01, 2017 - Sep 30, 2018 8.30
Oct 01, 2018 - Jun 30, 2019 8.70
Jul 01, 2019 - Mar 31, 2020 8.60
Apr 01, 2020 - Sep 30, 2022 7.40
Oct 01, 2022 - Dec 31, 2022 7.60
Jan 01, 2023 - Mar 31, 2023 8.00
Apr 01, 2023 - Mar 31, 2024 8.20

Eligibility Criteria for Senior Citizen Saving Scheme SBI

To avail of the benefits of the SBI Senior Citizen Scheme, you have to meet the following eligibility criteria:

  • Age: The minimum age limit is generally 60 years. However, there are exceptions:

    • Individuals who are 55 years or older but below 60 years and have retired under VRS (Voluntary Retirement Scheme) or superannuation are eligible.

    • Retired defence personnel can participate if they are between 50 and 60 years old.

  • Residency: You must be an Indian resident citizen.

  • Account Type: You can open a single account or a joint account with your spouse. Only the first account holder's age is considered for eligibility in a joint account.

  • Other Restrictions: Non-Resident Indians (NRIs) and members of Hindu Undivided Families (HUFs) are not eligible.

Documents Required to Open an SBI SCSS Account

An account in the Senior Citizen Savings Scheme by SBI can be opened in any of the branches of the State Bank of India. One has to provide the following documents for opening an SBI SCSS account:

  • Form A (Application form, which you can download from the SBI website)

  • Know Your Customer (KYC) Documents:

    • Proof of Identity (POI): This could be your PAN Card, Passport, Voter ID Card, or Aadhaar Card.

    • Proof of Address (POA): This could be your Aadhaar Card, Ration Card, Passport, Utility Bills (like electricity bill or telephone bill) not older than 3 months, or Bank Account Statement.

    • Proof of Age (POAge): This could be your Birth Certificate, Passport, Voter ID Card, PAN card, or Driving License.

  • One Passport-Sized Photograph

Comparison Between
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
7.5% (TAX-FREE)
Returns After Tax
7.5%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
awards
Still Better than FD’s and Debt Mutual Fund
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
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Taxability of SBI Senior Citizen Savings Scheme:

  • 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 SBI Senior Citizen Savings Scheme (SCSS)

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 4% - 7.5% for SBI) 8.20%
Guaranteed by Bank Government of India
Tax benefit Tax-Saving Schemes qualify under Section 80C (depends on the bank) Yes, 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 19 April 2024

SBI Senior Citizen Savings Scheme Premature Closure

SBI's Senior Citizen Savings Scheme (SCSS) 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: The penalty reduces to 1% of the deposit amount.

The Final Words!

The SBI Senior Citizen Savings Scheme offers a secure and beneficial avenue for senior citizens to invest their savings. With attractive interest rates and government backing, it provides financial stability and peace of mind to retirees. 

FAQs

  • What is the interest rate offered by SBI on SCSS?

    The interest rate on SBI SCSS is subject to change quarterly. As of April 19, 2024, the rate is 8.20% p.a.
  • Who is eligible to open an SBI SCSS account?

    Indian residents above 60 years of age can open a Senior Citizen Saving Scheme SBI.
  • What is the minimum and maximum deposit amount for SBI SCSS?

    The minimum deposit amount is ₹1,000 and the maximum deposit amount has been increased to ₹30 lakh.
  • Can I open a joint SBI SCSS account?

    Yes, you can open a joint account with your spouse under the SBI Senior Citizen Scheme.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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