After accepting government backed savings schemes like Public Provident Fund and Sukanya Samriddhi Account now HDFC Bank is ready to add Seniors Citizens Saving Scheme (SCSS) in its portfolio. HDFC Bank will act as an agency for the Government of India to help manage the scheme. Eligible customers can apply for the scheme in any HDFC Bank. Here are the Key Points:
What is SCSS?
Seniors Citizens Saving Scheme (SCSS) is a saving plan by the Government of India designed specially for the senior citizens. It helps the senior citizens to achieve steady income with attaractive interest rates.
What are the features of SCSS?
– Senior citizen can open account individually or jointly with spouse.
– Minimum deposit for the scheme is rs1000 and maximum is rs 15 lakh.
– Interest rate is 8.5%, fixed by the government for the period from april 1, 2024 to 31 March, 2025.
– Lock-in period is minimum 5 years, but can be extended for an additional 3 years multiple times.
– Interest is paid quaterly providing regular income for senior citizens.
– Individual can close the scheme prematurely when neede but there may be penalties.
Who is eligible for SCSS?
– Individual whose age is 60 or above
– Retired people aged 55 or older.
– Retired Defence Personnel aged 50 or above.
Tax benefit of SCSS?
– Amount invested in this scheme are eligible for tax deduction under Section 80c of the Income Tax act.
Parag Rao, member of the HDFC Bank’s Customer Service Committee said that SCSS helps senior citizens earn a steady income along with tax benefits. In FY24 HDFC Bank ranked among the top three agency banks for the Government of India.
SCSS is also available with other public and Private Banks. Here is few name below:
Public Sector Banks: Andhra Bank, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra etc
Private Sector Banks: ICICI Bank, HDFC Bank etc