There is good news for senior citizens. HDFC Bank, India’s largest private sector bank, can now accept deposits under the Senior Citizen Savings Scheme (SCSS).
Until now, SCSS accounts could only be opened in post offices and public sector banks.
With this new update, senior citizens can now open an SCSS account with HDFC Bank as well.
Under this government-backed scheme, senior citizens earn a fixed interest rate of 8.2% per year.
This makes it a reliable option for securing a steady income after retirement.
HDFC Bank Becomes an Agency Bank
HDFC Bank has been designated as an agency bank for the Government of India. This means it can now accept SCSS deposits and offer related services.
The bank has stated that eligible customers can apply for the scheme at any HDFC Bank branch across the country.
SCSS Key Features
Interest Rate: SCSS offers an 8.2% annual interest rate, applicable from April 1, 2024, to March 31, 2025. The government periodically revises this rate.
Lock-in Period: The scheme has a 5-year lock-in period.
Tax Benefits: Investments in SCSS qualify for tax exemption under Section 80C.
Interest Payment: Interest is paid every quarter (every three months).
Who Can Apply?
1) Any individual aged 60 years or above.
2) Retired employees (superannuation) aged 55 years or above.
3) Retired Defense personnel aged 50 years or above.
Parag Rao, Country Head, Payments, Liability Products, Consumer Finance, and Marketing at HDFC Bank, expressed pride in including SCSS as part of the bank’s offerings.
He emphasized that SCSS provides a fixed income source with an attractive interest rate and additional tax benefits.
HDFC Bank’s Contribution to Government Schemes
HDFC Bank already provides government-backed savings schemes such as the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY).
In FY 2023-24, the bank collected over ₹10 lakh crore in taxes, ranking among the top three agency banks in India.
Other Banks Offering SCSS
As per the Reserve Bank of India (RBI), the following banks also accept SCSS deposits:
Public Sector Banks
Bank of Baroda
Bank of India
Punjab National Bank (PNB)
State Bank of India (SBI)
Union Bank of India
Canara Bank
Central Bank of India
Private Sector Banks
ICICI Bank
IDBI Bank
HDFC Bank (Newly Added)
With HDFC Bank now included, customers have more banking options and greater convenience.
SIP vs. PPF: Which is Better for Investing ₹10,000 Monthly for 15 Years?
If you are considering investing ₹10,000 every month for 15 years, should you choose Systematic Investment Plan (SIP) or Public Provident Fund (PPF)? Each has its own benefits:
SIP (Mutual Funds): Offers market-linked returns, higher growth potential, and flexibility.
PPF: Provides guaranteed returns, tax benefits, and long-term security.
Your choice depends on risk appetite, financial goals, and investment preference.
