Senior Citizen Saving Scheme 2023

Maturity period of Senior Citizen Saving Scheme:-
The Senior Citizens Savings Scheme of the Government of India is a short-term investment scheme. The maturity time limit in this scheme is 5 years. If he wishes, within 1 year after maturity, the investor can extend its maturity period by 3 years. There is no charge of any kind for withdrawing money after maturity. Account extension can be applied for within 1 year to extend the maturity period. If you extend your account for 3 years, you can close it anytime after completion of 1 year, in that case no amount will be deducted from your deposited amount.

Rules for withdrawing money before maturity:-
If you wish to make premature withdrawal under the Senior Citizen Savings Scheme, penalty rules apply depending on the time between opening the account and withdrawal. The penalty rules for premature withdrawal are as follows.

If account is closed before completion of 2 years from the date of account opening, 5% of the deposited amount is deducted as penalty.
In the Senior Citizen Saving Scheme, if the investor wants to withdraw money between 2 to 5 years from the time of opening the account, then 1% of the deposited amount will be deducted as penalty.

Benefits of investing in Senior Citizen Saving Scheme:-
By investing in Senior Citizen Saving Scheme, senior citizens get the safest and most reliable investment option.
You can open an account in Senior Citizen Savings Scheme for at least Rs 1000.
Any citizen above 60 years of age can invest in this scheme.
The maximum deposit amount that can be invested is Rs 30 lakh or the amount received on retirement, whichever is less.
On completion of the period of 5 years the entire amount deposited is returned.
In this scheme, the benefit of 8% interest rate is available every year. Which is especially high compared to traditional investment options like FDs and savings accounts.
In Senior Citizen Saving Scheme, the interest amount is paid quarterly which ensures payment for the tenure of the investment. That means after every 3 months you will continue to get the benefit of interest amount.
Under Section 80C of the Income Tax Act, an investor gets the benefit of tax exemption of Rs 1.5 lakh per year by investing in the Senior Citizen Savings Scheme.
The process of investing under this scheme is quite simple.
Senior Citizen Savings Account can be opened in any post office of any authorized bank in India.

Names of those banks where senior citizens can open accounts under Saving Scheme.:-
Bank of Baroda
Corporation Bank
State Bank of India
Andhra Bank
Vijaya Bank
Bank of India
Punjab National Bank
Syndicate Bank
UCO Bank
Canara Bank
ICICI Bank
Allahabad Bank
dena bank
Union Bank of India
Canara Bank
IDBI Bank

Eligibility for Senior Citizen Saving Scheme:-
Any citizen of India can open a Senior Citizen Savings Account.
Ordinary citizens who have completed 60 years of age can open the account.
Employees taking retirement or VRS will be eligible to open Senior Citizen Savings Account at the age of 50 years.
The facility of opening an account before the age of 60 years is available to such employees on the condition that they open the account within 1 month of receiving the retirement benefit.
Foreign citizens or Indians who have acquired citizenship of any other country are not allowed to open Senior Citizen Savings Account.
In this account, permission is given to open a joint account with the husband or wife.
On opening a joint account, the minimum age requirement will be applicable only on the main account holder. The second account holder (husband or wife) can be included to open a joint account, irrespective of the age.

Documents required for Senior Citizen Saving Scheme:-
identity card
Aadhar card
Address proof
age certificate
passport size photo
mobile number
email id

Process to open account under Senior Citizen Saving Scheme:-
To open an account under Senior Citizen Saving Scheme, first of all you have to go to your nearest bank or post office.
By going there you will have to get the form to open a Senior Citizen Savings Account.
After receiving the application form, you will have to carefully enter all the necessary information asked in the form.
After this you have to attach the form with photo copy of KYC documents. Which will include identity card, residence certificate, proof of age and two passport size photographs.
After entering all the information, you have to submit the application form back from where you received it.
In this way you can open under Senior Citizen Saving Scheme.