All the customers of SBI are eligible to avail the benefits of the SBI Senior Citizen Savings Scheme and can enjoy the attractive interest rate as well. The features and benefits of this scheme are:
- The minimum amount that can be deposited in the Senior Citizen Savings Scheme offered by SBI is Rs. 1,000, and the deposit cannot be more than Rs. 15lakhs.
- The lock-in period of this scheme is five years, and an account holder can further extend it for three years.
- The first account holder can easily receive the whole deposit made in a joint account.
- One cannot make multiple withdrawals from this account.
- The depositor can nominate more than one person with a digital seva portal.
- Interest Rate of SBI Senior Citizen Savings Scheme:
- The government of India declares senior Citizen Savings Scheme SBI interest rates in advance before every quarter. The applicable interest rates for the current quarter were notified on 01st July 2020; at present, it is 7.4%.
The most recent rate of interest applies to SBISenior Citizen Savings Scheme, and the same applies to the entire lock-in period, which is five years. In the same manner, the current interest rates will be the ones that are announced when one is extending the tenure of the SBI Senior Citizen Savings Scheme.
So, the rate of interest on SBI SCSS in September 2020 was 7.4%, deposits made in this scheme during this tenure will get a 7.4% rate of interest till September 2025. The rate of interest for the next quarter will not affect the same.
There will not be any cumulative option to pay the interest rate under the Senior Citizen Savings Scheme by SBI. The rate of interest is payable every quarter. The initial interest tranche is paid from the date on which the deposit is made until the end of the quarter, and the same applies for every coming quarter with the idea of the SBI Senior Citizen Savings Scheme.
Here is the list of the interest rates in previous quarters:
Different Quarters Rate of Interest (%)
- Financial Year 2020 – 21 Q2 (July to September) 4
- Financial Year 2020 – 21 Q1 (April to June) 4
- Financial Year 2019 – 20 Q4 (January to March) 6
- Financial Year 2019 – 20 Q3 (October to December) 6
- Financial Year 2019 – 20 Q2 (July to September) 6
- Financial Year 2019 – 20 Q2 (April to June) 7
Eligibility Criteria to Invest in SBI SCSS:
For availing of the benefits of the SBI Senior Citizen Savings Scheme, one has to meet the following eligibility criteria:
- The minimum age limit to invest in this scheme is 60 years.
- If an individual has taken VRS or is retired with superannuation, then he/she can avail of the benefits of the SBI Senior Citizen Savings Scheme if he/she is more than 55 years and less than 60 years.
- Retired defense service personnel are eligible to opt for this scheme is he/she has attained the age of 50 years.
- Persons of Indian Origin, Hindu Undivided Family Members, and NRIs (Non-Resident Indians) are not eligible to open an account with SBI SCSS.
- Documents Needed to Open an SBI SCSS Account:
An account in the Senior Citizen Savings Scheme by SBI can be opened in any of the branches of the State Bank of India. One has to provide the following documents to open an SBI SCSS account or you can check Digital Seva Portal for more details.
- Form A
- Proof of address such as telephone bill, Aadhar card, etc.
- ID proof such as PAN card, passport, etc.
- Proof of age such as birth certificate, voter Id card, etc.
- Passport-size photo.