The government is working great to provide multiple savings options to the country’s senior citizens, especially those over 60. The Senior Citizen Saving Scheme has been proposed to exempt senior citizens from filing ITR (Income Tax Returns) or taxes if their interest and pension income is the only source of annual income.
In addition, section 194P was recently announced to deduct tax on the annual income of people over 75. The senior citizen saving scheme is for people living in India and those over 60. This scheme provides the highest level of security with multiple tax benefits and savings options.
In this article, we will learn about the SCSS (Senior Citizen Saving Scheme) of the Bank of Baroda in detail. (Multiple banks offer this scheme to their customers, but here we will solely talk about Bank of Baroda.)
Senior Citizen Savings Scheme
Senior Citizen Savings Scheme (SCSS) is a government-based retirement program for people whose age is over 60 plus. Senior Citizens living in India can enroll in this scheme and get multiple benefits of tax returns and interest on annual income. They can invest individually or open a joint account to get regular returns on their investment.
(You can connect with the nearest BOB branch to get further information on the application and open an account or use bob net banking)
Advantages of Senior Citizen Saving Scheme
We understand that SCSS is a saving and investment lump sum offered by the current government to the people of India. The saving scheme is highly popular for people’s returns and tax benefits. Here are some of the advantages of SCSS.
- SCSS (Senior Citizen Saving Scheme) is available easily with most banks. Here we are talking about BOB. So, visit the nearest BOB branch, fill out the application form and get the investment account open.
- SCSS is an investment product launched by the Government of India. Therefore, no need to worry about security or assurance.
- There is no limit to opening SCSS accounts as long you fall into terms and conditions.
- The interest rate of the SCSS scheme is perfect and satisfactory. You can get up to 8.7% of returns on your investment.
- It is a long-term product. You can save your funds under this scheme for a minimum of five years and can extend up to three years.
- According to Section 80C, such investments can save TDS on the returns.
Disadvantages of Senior Citizen Saving Scheme
Just like the advantages, we must consider some disadvantages before deciding.
- In case of premature withdrawal without completing the tenure of two or more years, a 1.5% penalty will be charged.
- 1% of the deposit amount in case of early withdrawal before five years.
Senior Citizen Savings Scheme interest rate (Bank of Baroda)
The senior citizens who have opened their account under SCSS (BOB) scheme can get an annual return of 7.4% on their deposit amount. However, the interest rates vary and depend on the bank.
You can open an account with the minimum savings of Rs 1000, but the amount should not exceed Rs 15 Lac.