SBI or State Bank of India offers a number of financial products such as Senior Citizen Savings Scheme (SCSS). An individual can open the SCSS account either singly or jointly with the spouse, according to SBI's corporate website, sbi.co.in. A depositor can also operate more than one SCSS account. However, the deposits in all accounts taken together should not exceed Rs 15 lakh, according the bank. The Senior Citizen Savings Scheme is a government product, the interest on which is decided by the Ministry of Finance from time to time.
Here are five key things to know about SBI senior citizen savings scheme:
1. Eligibility: An individual of 60 years and above can open an SCSS account with SBI. A person of 55 years or more but less than 60 years who has retired on superannuation can also open this account.
2. Interest rates: The deposits made under SBI's SCSS fetches interest at the rate of 8.60 per cent per annum from the date of deposit. The amount is payable at the end of each calendar quarter i.e. March 31, June 30, September 30 and December 31. Compounding of interest is not permissible, according to the SBI website.
3. Mode of deposit: The deposits can be made in cash, if the amount of deposit is less than Rs 1 lakh.
4. Renewal of account: A depositor can extend the SCSS account for a period of three years after the maturity period of five years.
5. Other facilities: SBI also offers nomination facility with the scheme. A depositor can nominate a person or more than one person, at the time of opening of the account or even after the opening of the account. Under SCSS, withdrawal is permitted is allowed after one year but one needs to pay a penalty, according to SBI.