Under the Senior Citizen Savings Scheme, only senior citizens above 60 years of age can open their account. Apart from this, civilian employees who have retired or are above 55 years of age can also avail the benefits of this savings scheme.
New Banking System: The country’s largest private bank HDFC Bank has started a new facility for its crores of customers. Actually, the private bank will deposit money for senior citizens under the Senior Citizen Savings Scheme run by the government. The bank said in a statement that it will work as an agency bank for the government and will provide the facility to the customers without any hassle. HDFC Bank further said that all customers can apply for the Senior Citizen Savings Scheme by visiting the bank’s branch.
You get a strong return of 8.2 percent on investment
HDFC Bank accepts applications for small savings schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY). Let us tell you that at present, customers get a high return of 8.2 percent per annum on Senior Citizen Savings Scheme. This interest rate has been determined by the Central Government and it will be applicable from 1 April 2024 to 31 March 2025.
Who can invest?
Let us tell you that under the Senior Citizen Savings Scheme, only senior citizens above 60 years of age can open their account. Apart from this, civilian employees who have retired or their age has exceeded 55 years can also avail the benefits of this savings scheme. At the same time, the fixed age for opening an account for employees of defense service is 50 years.
Benefit of tax deduction on investment
It should be known that on investing under Senior Citizen Savings Scheme, investors also get the benefit of tax deduction under Section 80C of the Income Tax Act. At the same time, interest is charged on investment every three months, but it is available for one year after a lock-in period of five years. The special thing about this scheme is that it can be extended for three years at times. However, the government increases or decreases the interest rates from time to time.
Facility is also available in these banks including HDFC
It is worth noting that the Reserve Bank of India has selected a total of 26 banks including HDFC Bank as bank agencies for the Small Savings Scheme. It includes Andhra Bank, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab National Bank and State Bank of Business and Jaipur. In all these banks, any person above 60 years of age can open his account under Senior Citizen Savings Scheme.
