HDFC Bank Now Accepts Senior Citizen Savings Scheme (SCSS) Deposits; Who Are Eligible?

The top private sector bank in India, HDFC Bank, declared today that it will begin accepting deposits under the Senior Citizens' Savings Scheme (SCSS), a small savings scheme administered by the Indian government. As an agency bank for the Indian government, HDFC Bank will assist in sourcing schedule deposits while offering customers smooth service across all branches.

Customers who have superannuated at or above the age of 55 and those who are 60 years of age or older are eligible for this scheme. Additionally, after turning 50, retired personnel of Defence Services are also able to enrol for SCSS scheme. Section 80C of the Income-Tax Act provides benefits for investments in SCSS for senior citizens. The plan has a five-year lock-in term and pays interest quarterly. It can be extended multiple times by an additional three years.

Mr. Parag Rao, Country Head - Payments, Liability Products, Consumer Finance and Marketing, HDFC Bank said, "As one of the leading agency banks, we are pleased to offer yet another scheme under the umbrella of the Government of India's flagship National Small Savings Schemes programme. The SCSS helps the elderly citizens of the country to cultivate a steady income stream basis an attractive interest rate offered under the plan. Being eligible for consideration under Section 80C for income tax computation is an added benefit of the scheme."

The HDFC Bank's current government-backed products, such as the Sukanya Samriddhi Account Scheme and the Public Provident Fund, are strengthened by SCSS.

List of Banks Operating PPF/Senior Citizens' Savings Scheme (SCSS)

As per RBI data, here are the banks currently accepting PPF and SCSS deposits in India.

1. Andhra Bank
2. Allahabad Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10. Indian Bank
11. Indian Overseas Bank
12. Oriental Bank of Commerce
13. Punjab National Bank
14. State Bank of Bikaner & Jaipur
15. State Bank of Hyderabad
16. State Bank of India
17. State Bank of Mysore
18. State Bank of Patiala
19. State Bank of Travancore
20. Syndicate Bank
21. UCO Bank
22. Union Bank of India
23. United Bank of India
24. Vijaya Bank
25. IDBI Bank Ltd.
26. ICICI Bank Ltd.

SCSS Interest Rate: SCSS provides an annual interest rate of 8.2%, which is payable from the date of deposit until, in the first instance, 31 March, 30 September, or 31 December. After that, interest is payable on 1 April, 1 July, 1 October, and 1 January. Investments made under this plan are eligible for the Income Tax Act of 1961's section 80C benefits. From the date of deposit until March 31, June 30, September 30, or December 31, interest will be paid on a quarterly basis. An account holder will not get additional interest if they fail to claim the interest that is payable each quarter. If the total interest earned in all SCSS accounts in a fiscal year surpasses Rs. 50,000, interest is taxable, and TDS at the specified rate will be imposed.

SCSS Eligibility: The eligibility requirements for a SCSS account are as follows: an individual must be at least 60 years old; retired civilian employees must be between 55 and 60 years old and must make an investment within one month of receiving retirement benefits; and retired defence employees must be between 50 and 60 years old and must make an investment within one month of receiving retirement benefits. The account can be opened individually or jointly with a spouse only.

SCSS Deposit Limit: Every SCSS account that an individual opens must have a single deposit in multiples of Rs 1000, with a maximum of Rs 30 lakh. If a surplus deposit is made into an SCSS account, the amount in excess will be returned to the depositor and the interest rate on the PO Savings Account will be the only one that applies between the date of the over-limit deposit and the period of refund.

SCSS Maturity & Account Extension Rules: After five years from the date of opening, SCSS reaches maturity. If the account holder dies, the account will start earning interest at the PO Savings Account rate on the date of death. If the spouse is a joint holder or a single nominee, the account can be kept open until maturity as long as the spouse fulfils the requirements to establish a new SCSS account. By submitting the necessary paperwork jointly with their passbook to the relevant post office, SCSS account holders can extend their account for an additional three years after the date of maturity within a year of the account's maturation. Interest will be paid on the extended SCSS account at the rate in effect on the maturity date.