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Which Bank is Best for SCSS? Eligibility and Benefits of SCSS

IndianMoney.com Research Team | Posted On Wednesday, February 26,2020, 05:47 PM

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Which Bank is Best for SCSS? Eligibility and Benefits of SCSS

 

 

The Senior Citizens Savings Scheme (SCSS) is mainly a savings scheme offered to retirees. It is a safe investment option for people to invest their retirement corpus. It is a tax-efficient avenue for retirees to generate interest income on their investment. The scheme offers quarterly payouts to senior citizens which they can easily transfer to their savings account.  The scheme is specially designed for retirees to help bridge the gap between pension and the last salary drawn.

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Which Bank is Best for SCSS? Eligibility and Benefits of SCSS

The scheme is mainly offered by the Indian post office. However, you can also avail the scheme through some designated banks. Given below is the list of banks offering SCSS:

  • Allahabad Bank
  • Andhra Bank
  • Bank of India
  • Bank of Maharastra
  • Bank of Baroda
  • Canara Bank
  • Corporation Bank
  • Central Bank of India
  • Dena Bank
  • ICICI Bank
  • Indian Bank
  • Indian Overseas Bank
  • IDBI Bank
  • Punjab National Bank
  • Syndicate bank
  • State Bank of India
  • Union Bank of India
  • UCO Bank
  • Vijaya Bank

See Also: Senior Citizen Savings Scheme Account

The SCSS scheme in banks is also a government of India product. The current interest rate stands at 8.6% which is subjected to periodic revision. It is the most secure investment option as it comes with a sovereign guarantee. However, the SCSS scheme offered by banks comes with the following additional benefits:

  • You can directly transfer funds to your SCSS account for one-time lump sum investment if you have savings account in any of the above banks.
  • You can avail the facility of direct transfer of the interest in your bank account.
  • You will get notification of account statement and balance through SMS.
  • The main benefit of availing this scheme through a bank is online banking which is not usually present in post office schemes. A leading private sector bank that offers SCSS is ICICI bank.
  • You can also get assistance 24*7 through phone banking services. Thus you can easily initiate withdrawal requests online without hassle.

Eligibility of SCSS:

In order to avail the benefits of the senior citizens savings account, an applicant must fulfil the below-mentioned criterion:

  • The scheme can be availed by resident Indians who are above 60 years of age.
  • Members of the HUF are also entitled to open an account under the same rules.
  • The scheme can also be availed by individuals who are 55 years of age provided they have retired under superannuation or VRS rules. IN such cases, the account must be opened by the beneficiary within 1 month of the receipt of retirement benefits.
  • The scheme is also offered to the retired defence personnel irrespective of the specified age limits and subjected to the fulfilment of certain terms and conditions.
  • The scheme is also available for Non-resident Indians (NRIs) and person of Indian Origin (PIOs).

See Also: Why investing in SCSS is Better than FD?

Benefits of Investing in SCSS Scheme:

The scheme is immensely popular among retirees as it offers a regular income along with protection of the invested capital. It offers a safe option to park lump sum money and earn attractive interest on deposits. Here are some of the key benefits offered by the SCSS scheme:

  • Since the scheme is backed by sovereign guarantee, the SCSS scheme comes with all the protection and some added features usually associated with the government-backed schemes.
  • The scheme is available through Indian Post office and banks across the country.
  • Currently, the rate of interest offered for senior citizen saving scheme is 8.6% which makes it an attractive investment option for retirees. A higher return ensures a better monthly income for senior citizens.
  • The scheme is also opened for income groups as the minimum investment amount is Rs. 1000. The maximum amount is capped at Rs. 15 Lakh. The investor can make only one-time lump sum investment in multiples of Rs. 1000.
  • The account offers flexibility when it comes to choosing investment tenure. The account comes with an initial investment period of 5 years. The scheme can be further extended for a period of years as per the discretion of the depositor. Thus this is a medium to long-term investment scheme allowing you to switch investments in case of drastic changes implemented in the scheme.
  • The investment made under the scheme offers tax benefits to the investor. The investors can claim tax deduction under Section 80C of the Income Tax Act, 1961 up to a maximum of RS. 1.5 lakh per year.
  • The investors can also prematurely withdraw the deposited amount in case of medical or financial emergencies. However, he may have to pay a minimum penalty.

See Also: Financial Planning For Ex-Servicemen - Checkout Now

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