SBI Senior Citizen Savings Scheme (SCSS): Eligibility, Interest Rate, Other Features

State Bank of India (SBI) offers the option of opening a senior citizen savings scheme (SCSS) - an investment avenue that helps in generating wealth for a successful retirement life. According to SBI's website- sbi.co.in, a depositor can open the SCSS account either in individual capacity or jointly with spouse. There can be only one deposit in the SCSS account in multiple of Rs 1,000 where the maximum amount must not exceed Rs 15 lakh, according to the lender's website.

Given below are 5 features of SBI Senior Citizen Savings Scheme (SCSS):

Eligibility

An individual who has attained the age of 60 years and above can open SCSS account with SBI. An individual who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation can also open this account, according to SBI's website.

The retired personnel of defence services (excluding civilian defence employees) irrespective of the given age limits subject to fulfilment of other specified conditions are also eligible for opening SCSS account.

Interest rates

The deposits made under Senior Citizen Savings Scheme (SCSS) earns an interest rate of 8.7 per cent per annum, from the date of deposit which is payable at the end of each calendar quarter i.e. March 31 / June 30 / September 30/ December 30. Compounding of interest is not permissible, according to SBI's website.

Mode of deposit

The deposit can be made either in cash, if the amount of deposit is less than 1 lakh rupees, or by cheque or demand draft drawn in favour of the depositor and endorsed in favour of the deposit office, according to SBI's website.

Renewal

The depositor can extend the Senior Citizen Savings Scheme (SCSS) account for a further period of three years after the maturity period of five years. 

Nomination:

Under SBI's SCSS account, the depositor can nominate a person or more than one person, at the time of opening of the account or at any time after the opening of the account but before its closure, according to SBI's website. Nomination made by the depositor can alos be cancelled or varied.