The State Bank of India or SBI is one of India’s largest financial statutory bodies, operational since 1955. It offers a host of financial products services to its customers, among which, its senior citizen savings scheme, in particular, has garnered immense popularity in recent times.
A Senior Citizens Savings Scheme (SCSS) is a government-sanctioned savings opportunity for individuals aged 60 years or more. While it comes with a fixed tenure of maturity, it can be further extended by the account holder.
Following is a look at the SBI Senior Citizen Savings Scheme and the pertinent information that one must be aware of before investing in it.
Customers of the State Bank of India can avail of this scheme and enjoy an attractive Senior Citizen Saving Scheme SBI interest rate against it.
Features of the SBI Senior Citizen Savings Scheme include –
The rate of interest under this scheme is declared by the Government in advance before every quarter. The interest rate applicable for the present quarter has been notified on July 1st, 2020, and currently stands at 7.4%.
The rate of interest that was prevalent when the deposit was made in the savings account will be applicable for the first 5 years. Subsequently, the prevailing interest rate will be the one announced at the time of extending the scheme's tenure.
In other words, since the SBI SCSS interest rate from September 11th, 2020, is 7.4%, deposits that are made under the scheme now will be subject to a 7.4% interest rate till September 2025, notwithstanding any changes to the interest rate in next quarter. After September 2025, that interest rate will be as announced for each quarter.
Under SBI Senior Citizen Savings Scheme, there is no cumulative option for the payment of interest. The interest is payable on a quarterly basis. The first tranche of interest is paid for the date that deposit is made until the quarter end, and henceforth, for each proceeding quarter.
Here is an indicative list of the rate of interest in previous quarters –
Quarters |
Rate of Interest |
(FY 2022-23) January to March |
7.4% |
(FY 2022-23) October to December |
7.4% |
(FY 2022-23) July to September |
7.4% |
(FY 2022-23) April to June |
7.4% |
(FY 2021-22) January to March |
7.4% |
(FY 2021-22) October to December |
7.4% |
(FY 2021-22) July to September |
7.4% |
(FY 2021-22) April to June |
7.4% |
(FY 2020-21) January to March |
7.4% |
(FY 2020-21) October to December |
7.4% |
(FY 2020-21) July to September |
7.4% |
(FY 2020-21) April to June |
7.4% |
(FY 2019-20) January to March |
8.6% |
(FY 2019-20) October to December |
8.6% |
(FY 2019-20) July to September |
8.6% |
(FY 2019-20) April to June |
8.7% |
(FY 2018-19) January to March |
8.7% |
(FY 2018-19) October to December |
8.7% |
(FY 2018-19) July to September |
8.3% |
(FY 2018-19) April to June |
8.3% |
To avail of the benefits of the SBI Senior Citizens Saving Scheme, an individual will have to ensure that he or she meets the following criteria –
SCSS SBI account holders can enjoy tax benefits under section 80C of the Income Tax Act, 1961, under which they can enjoy tax benefits on income earned of up to Rs.1.5 lakh.
Interest earned through this account is entirely taxable. If the interest in a financial year, generated under this savings scheme amounts to more than Rs.50,000, it will attract TDS (Tax Deducted at Source).
SBI has announced a special fixed deposit scheme called ‘SBI WeCare’ for senior citizens. It differs from the Senior Citizen Savings Scheme (SCSS) in quite a few aspects.
Particulars | SBI WeCare | SCSS |
Eligibility | Applicable for resident senior citizens who have attained 60 years of age. | Individuals above 60 years of age can invest in this scheme. |
Rate of interest |
6.30% (for senior citizens) 5.50% (for general public) |
7.4% |
Tenure | Minimum – 5 years
Maximum – 10 years |
Maturity period – 5 years
(which may be further extended by 3 years) |
Tax benefit | Not applicable | Benefit under section 80C of Income Tax Act, 1961 |
An SBI Senior Citizen Scheme account can be opened in any of its branches. The following self-attested documents are required for starting the account –
Eligible individuals can invest in this scheme by opening an account through any Indian Post Office. The interest generated per the applicable SBI SCSS interest rate is automatically credited to the investors’ linked account at the same post office. One can, thus, gather substantial earnings through this savings scheme.