Established in 1935, the Bank of Maharashtra has established itself as one of the major public sector banks in the country with its 85 years of service. In 2016, the bank had about 1897 branches across India, with a plethora of financial products and services for its customers. Among these, the Bank of Maharashtra Senior Citizen Scheme is one of the most prominent investment instruments for retired individuals.
The Senior Citizen Savings Scheme was launched by the Government of India in 2004 to offer a scope of regular income for individuals aged 60 years or above, at attractive interest rates. So far, it provides the highest level of safety to the investments by senior citizen depositors.
Senior citizens can invest under this scheme and enjoy attractive Bank of Maharashtra SCSS interest rates.
Few features of this Senior Citizen Savings Scheme have been indicated below –
Among all the schemes that allow guaranteed savings, the highest rate of interest is offered under this Senior Citizen Savings Scheme. The rate of interest, applicable under this scheme as on September 12th 2020, is 7.4%, determined for the July-September quarter 2020.
The interest rate under the Senior Citizens Savings Scheme is reviewed by the Finance Ministry for every quarter. The payment of interest is made on a quarterly basis, that is, paid on the 1st working day of April, July, October and January.
The rate of interest of Senior Citizen Savings Scheme for the previous few quarters is indicated below –
|Quarters||Rate of Interest|
|(FY 2020-21 Q2) July to September||7.4%|
|(FY 2020-21 Q1) April to June||7.4%|
|(FY 2019-20 Q4) January to March||8.6%|
|(FY 2019-20 Q3) October to December||8.6%|
|(FY 2019-20 Q2) July to September||8.6%|
|(FY 2019-20 Q1) April to June||8.7%|
|(FY 2018-19 Q4) January to March||8.7%|
|(FY 2018-19 Q3) October to December||8.7%|
|(FY 2018-19 Q2) July to September||8.3%|
|(FY 2018-19 Q1) April to June||8.3%|
Individuals complying with the following criteria can avail the benefits of this SCSS –
However, members of a HUF, POIs and non-resident individuals cannot opt for the benefits offered under this scheme.
While the investment made under the Bank of Maharashtra Senior Citizen Scheme qualify for tax benefits, the returns generated from the same is taxable.
When a senior citizen makes an investment in the Senior Citizen Savings Scheme, the individual can avail an income tax deduction benefit up to Rs.1.5 lakh under the Income Tax, 1961, Section 80 C.
The interest received under the Senior Citizen Savings Scheme is wholly taxable. In the instance that the interest generated amounts to more than Rs.50,000 in a financial year, TDS (Tax Deducted at Source) will be applicable on the earned interest.
The table mentioned below indicates the comparison between the Bank of Maharashtra Senior Citizen Scheme with that of the FD offered by the same bank for senior citizens –
|Senior Citizen Savings Scheme||Fixed Deposit of Bank of Maharashtra (for senior citizen)|
|Rate of Interest
(as on September 13th, 2020)
|7.4% (July to September 2020)||7 to 45 days (3.50%)
46 to 90 days (4.25%)
91 to 180 days (4.50%)
181 to 270 days (5.00%)
271 to 364 days (5.00%)
|Maturity Period||5 years||Ranges between 7 days to 10 years|
|Tax Benefit (On Returns)||Taxable||Taxable|
|Tax Benefit (On Investment)||Applicable||Applicable|
|Premature withdrawal||After 1 year (1.5% charge)||
Application for the Bank of Maharashtra Senior Citizen Scheme can be made online and offline. The account opening form can be downloaded from the bank’s official website or may be obtained from any of the branches.
The form will require the applicant to mention certain specific details –
After filling up these details, the application form will have to be submitted along with other supporting documents such as identity proof, address proof, age proof, passport size photos etc.
Individuals looking to park their savings into this scheme can easily propagate proper financial planning with these scheme details at their disposal.