Good news for senior citizens! HDFC Bank, one of the largest private sector banks in India, has now become a part of the Senior Citizen Savings Scheme (SCSS).
Until now, SCSS accounts could only be opened in post offices and public sector banks. But now, senior citizens can also open SCSS accounts at HDFC Bank, providing them with more options for managing their savings.
What is the Senior Citizen Savings Scheme (SCSS)?
The SCSS is a government-backed savings scheme offering an 8.2% annual interest rate.
It’s designed to provide a fixed income to senior citizens after retirement, making it a great option for those looking for stable returns post-retirement.
HDFC Bank’s Role as Agency Bank
With this new development, HDFC Bank will serve as an agency bank of the Government of India, enabling it to accept SCSS deposits and offer related services to customers.
HDFC Bank has announced that eligible customers can now apply for the scheme by visiting any of its branches across the country.
Key Features of SCSS
Interest Rate: 8.2% annually, applicable from 1 April 2024 to 31 March 2025. (Note: The government periodically revises the interest rate.)
Lock-in Period: 5 years.
Tax Exemption: Investments in SCSS are eligible for tax benefits under Section 80C of the Income Tax Act.
Interest Payment: Interest is paid quarterly (every three months).
Eligibility Criteria
Individuals aged 60 years or above.
Retired employees (superannuation) aged 55 years or above.
Personnel retired from Defence Services aged 50 years or above.
HDFC Bank’s Contribution to Government Schemes
HDFC Bank has been actively participating in government schemes such as Public Provident Fund (PPF) and Sukanya Samriddhi Yojana.
For the financial year 2023-24, HDFC Bank contributed over ₹10 lakh crore in tax collection across India, cementing its place as one of the top three agency banks of the government.
Other Banks Offering SCSS
Apart from HDFC Bank, several other public and private sector banks offer SCSS. These include:
Public Sector Banks:
Bank of Baroda
Bank of India
Punjab National Bank
State Bank of India (SBI)
Union Bank of India
Canara Bank
Central Bank of India
Private Sector Banks:
ICICI Bank
IDBI Bank
With the addition of HDFC Bank, customers now have even more convenience and choices for investing in the Senior Citizen Savings Scheme.
