Share:

Axis Bank, headquartered in Mumbai, was established initially as UTI Bank in 1993. It started its operations when the government permitted private banks to be established. As of this date, among all Indian private sector banks, Axis Bank has the most number of ATMs at almost 12,922, across the country. Apart from India, the bank maintains a presence in Hong Kong, Singapore, Dubai, Colombo, Shanghai, Abu Dhabi etc.

Among the host of extended financial products, the SCSS or Senior Citizen Savings Scheme Axis Bank has garnered immense popularity. SCSS was introduced by the government with an aim to meet the monetary needs of retired individuals. It seeks to provide guaranteed returns on the amount invested, without any market-related risks.

Features of the Senior Citizen Savings Scheme 

Senior Citizen Saving Scheme Axis Bank offers a significantly high-interest rate when compared to other investments options of similar nature. The most notable features of this scheme include –

  • Minimum deposit amount for this scheme is Rs.1000, and the maximum deposit is capped at Rs.15 lakh. Deposits can be made only in multiples of Rs.1000.
  • Minimum deposit term is 5 years and can be further extended by 3 years.
  • More than 1 person can be a nominee.
  • The account may be opened both in an individual capacity and with a co-applicant.
  • Penalty of 1.5% will be levied in premature withdrawal.

Rate of Interest against Axis Bank Senior Citizen Scheme

Axis Bank Senior Citizen Saving Scheme interest rate is notified by the government ahead of every quarter. Even though the prevailing interest rate is 7.4%, it may vary across different quarters –

QuartersRate of Interest
(FY 2020-21) July to September7.4%
(FY 2020-21) April to June7.4%
(FY 2019-20) January to March8.6%
(FY 2019-20) October to December8.6%
(FY 2019-20) July to September8.6%
(FY 2019-20) April to June8.7%
(FY 2018-19)January to March8.7%
(FY 2018-19) October to December8.7%
(FY 2018-19) July to September8.3%
(FY 2018-19) April to June8.3%

During the scheme’s tenure, the interest rate will continue to be the same as it was when the corpus was invested.

For instance, if the deposit under Senior Citizen Savings Scheme Axis Bank is made in August 2020, the rate of interest will remain 7.4% till August 2025. However, if the tenure is extended by another 3 years, the rate will be the one prevailing when the term is renewed in 2025.

It should be noted in this regard that interest is compounded annually and paid out in each quarter.

Eligibility to Invest into Senior Citizen Saving Scheme Axis Bank

Those complying with the following criteria can invest in the Axis Bank SCSS –

  • Individuals who are aged 60 years or more.
  • Individuals who are aged 55 years or more and have retired on superannuation or VRS. (The corpus will have to be deposited in SCSS within 1 month of receiving the retirement benefits)
  • Defence Services personnel aged 50 years or more.

However, Senior Citizen Savings Scheme Axis Bank eligibility does not include members of the HUF, NRIs, or PIOs.

Taxability of Axis Bank Senior Citizen Saving Scheme

Investment under the Senior Citizen Savings Scheme Axis Bank is subjected to tax benefits. Deductions can be claimed under Section 80C of the Income Tax Act, 1961, up to Rs.1.5 lakh in a particular financial year. The interest generated on the corpus will, however, attract taxation at the depositor’s end. If the interest amounts to more than Rs.50,000 in a financial year, there will be tax deducted at source.

Comparison between Senior Citizen Saving Scheme and Fixed Deposit

While both these investment options offer the benefit of guaranteed returns, there are a few points of differences between Axis Bank SCSS and Fixed Deposits. These are –

Senior Citizen Savings SchemeFixed Deposit
Rate of Interest 

(as on September 19th, 2020)

7.4% (July to September 2020)Ranges from 2.50% to 6.15%
Maturity Period 5 yearsRanges from 7 days to 10 years
Tax Benefit Applicable On ReturnsTaxableTaxable
Tax Benefit Applicable On InvestmentApplicableApplicable
Premature withdrawal After 1 year (1.5% charge)1%

Documents Required to Start Account in Axis BankSCSS

To start an SCSS account, Form A will have to be filled and submitted along with supporting documents. Form A can either be downloaded from the official website of Axis bank or collected from the bank branch.

The supporting documents include –

  • Address proof
  • Age proof
  • Identity proof
  • Demand draft or cheque

These supporting documents will have to be self-attested. It must be noted that PAN is mandatory, without which the account cannot be started.

There are a host of other benefits under the scheme wherein an investor has the option to include the nominee while starting the account or at a later date. One should take note of the above-mentioned information to ensure that the process to start an SCSS account can be completed without hassle.

Share: