A Look at Senior Citizen Savings Scheme from ICICI Bank

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ICICI bank is the only private sector bank which is authorised to open accounts under the Senior Citizen Savings Scheme (SCSS) 2004.

At present, 24 nationalized banks and one private sector bank,  are authorized to handle the SCSS, 2004.

An individual who has attained the age of 60 years and above can open the senior citizen savings scheme from ICICI.

A Look at Senior Citizen Savings Scheme from ICICI Bank

One can hold any number of accounts. However, deposits in all accounts together should not exceed the maximum limit of Rs 15 lakhs or depositors shall be restricted to the retirement benefits or Rupees Fifteen lakhs whichever is lower.

The account can be opened in individual capacity or jointly with spouse.

NRI's and HUFs are not eligible to open an account under these rules.

What is the eligibility to open Senior Citizen Saving Scheme in ICICI?

An individual who has attained the age of 60 years and above on the date of opening of an account.
Who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation.

Individuals who have retired at any time before the commencement of these rules and attained the age of 55 years or more on the date of opening of an account.

The retired personnel of Defence Services irrespective of the above age limits subject to fulfilment of other specified conditions.

Interest Rates on Senior Citizen Savings scheme

The deposit bear interest rate at 8.6 per cent and will be decided by the government time to time. The interest is payable at the end of each calendar quarter on 31st March / 30th June / 30th September / 31st December.

Tax on Senior Citizen Savings Scheme

There is no income tax or wealth tax rebate is applicable under the Scheme. Tax rates will be applicable as per income earned by the individuals.

Tax Deducted at Source (TDS) is applicable to the Scheme as interest payments have not been exempted from deduction of tax at source. Tax is to be deducted at source as per the minimum limit prescribed by the Government.

Nomination

One can nominate a person at the time of opening of the account, who, in the event of death of the depositor, will be entitled to payment due on the account.

Nomination can be changed anytime by submitting the fresh form C by visiting the branch of the account.

One can nominate in case of joint account also. In such a case, the joint holder will be the first person eligible to receive the amount payable in the event of death of the depositor. The nominee's claim will arise only after the death of both the joint holders.

Can we withdraw the amount?

Withdrawal is permitted after one year of opening the account with penalty.

Closing after one year but before expiry of two years , an amount equal to one and half per cent of the deposit shall be deducted.

If the account is closed on or after the expiry of two years from the date of opening of the account, an amount equal to one per cent of the deposit shall be deducted.

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Read more about: icici bank, banking
Story first published: Monday, June 29, 2015, 11:05 [IST]
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