1306
5 min read
Visual Stories
A risk-free investment scheme for the elderly with assured returns to secure their future, learn all about SBI Senior Citizen Savings Scheme (SCSS) in this blog.
We work hard all our lives to earn money and meet our financial needs and those of our family. And then we also intend to create some wealth for the future to use in our post-retirement life, when we won’t be able to work or earn as much. This is when we start saving money in our present, locking it away safely in some form or the other, to use in the future.
A lot of us opt for schemes like Fixed Deposits (FDs) for this purpose since they are risk-free. However, FDs fail to generate more returns which does not eventually satisfy our purpose of saving for the future. The senior citizen saving scheme by the SBI is therefore an attempt to assure decent returns to the elderly so they can comfortably enjoy the golden age of their lives.
The saving plan introduced by the State Bank of India (SBI) is backed by the government, which gives some level of assurance to the senior citizens with regard to its safety and guaranteed returns. Under the SCSS, the elderly who are retirees can choose to open a joint account with their spouse and start investing in the account. Investments can be made via any mode – cash, cheque, demand draft, and the like.
Since the Senior Citizen Saving Scheme SBI is a government-backed plan, the rate of interest offered under the scheme is also in compliance with Govt. rules. As declared by the Govt. of India on April 1, 2020, the SBI Senior Citizen Saving Scheme interest rate was notified at 7.4%.
Unlike some other plans, the interest under SCSS is not paid cumulatively, rather paid to the investor quarterly. This also means that if the investor fails to withdraw the interest at the end of each quarter, no more returns will be payable on the scheme.
Investing in the Senior Citizen Saving Scheme of the SBI has a number of advantages for retirees. Some of these are listed below:
Read More: Senior Citizens Savings Scheme in India – Eligibility, Features and Tax Benefits
In order to avail the benefits described above under the SBI SCSS, there are certain requirements that must be met. Here is the eligibility criteria to apply for the scheme:
The process for applying for the SBI Senior Citizen Saving Scheme is quite simple and hassle-free. All you need to do is open an account at a SBI branch near you or a post office. You can visit any deposit office and submit the SBI Senior Citizen Saving Scheme Form A for application.
You would also be required to submit a valid proof of age along with the application form. Besides this, to open the account, you would need to deposit a certain minimum amount in multiples of thousand to get the account up and running. Note that you can opt for both single/individual and joint accounts with your spouse under the SBI SCSS plan.
Also note that the maximum limit for deposit in the account is Rs. 15 lakh and the total deposit should not ideally be higher than this limit.
Wrapping Up
At a time when you need finances the most to take care of your needs, the SBI Senior Citizen Savings Scheme is truly a boon for retirees. The scheme also provides for tax benefits along with a multitude of other benefits that can be availed by retirees. To know more about the current rate of interest payable under the plan, you can always check the SBI Senior Citizen Saving Scheme calculator online.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
For many risk-averse Indian citizens, an FD account is the safest and the most reliable means of securing a lump sum amount in a couple.
Have you ever delayed your ITR filing task until the last moment due to its difficulty? Income Tax Returns, commonly termed ITR, is a form.
Suraj was recently blessed with a daughter, and he wanted to invest in a safe and guaranteed scheme to save some money for her school.
When Sahil lost his job a couple of years back, he was devastated as he had a family of 6 to look after, which was.
Are you well-informed about the various schemes offered by your state government, especially the ones for the old, needy and people with low incomes? Do.
When Soha, a single mother, was considering different investment options to invest INR 10 lakhs for her daughter’s higher education, she wanted a risk-free and.
The Swatantrata Sainik Samman Yojana (SSSY) was introduced as a token of gratitude to the freedom fighters for their contributions to free India. Let’s learn.
As you embrace parenthood and enjoy the bliss of having a child in your life, you also prepare yourself to shoulder some responsibilities of the.
With the changing times, the perspective of women in society has experienced a sea change. From being labelled as a housewife to someone who has.
When it comes to investing in a good financial/investment scheme, there are a host of products available in the market to choose from. Some offer.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue