The government designed the Indian Overseas Bank (IOB) Senior Citizen Savings Scheme (SCSS) as a secure investment option for senior citizens. It provides a secure and reliable source of income with attractive interest rates, tax benefits, and guaranteed returns. This scheme is ideal for retirees seeking financial stability and security in their post-retirement years.
The government determines the interest rates on IOB SCSS and periodically revises them. As of the latest update, the interest rate for Senior Citizen Savings Scheme (SCSS) in IOB is around 7.4% per annum, paid quarterly. The interest rate is reviewed every quarter and revised based on market conditions.
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To invest in the IOB Senior Citizen Savings Scheme, an individual must meet the following eligibility criteria:
| Features | IOB SCSS | Fixed Deposit |
| Interest Rate | Around 7.4% (subject to change) | Varies between 5%-7% |
| Tax Benefits | Eligible under Section 80C | Only certain FD schemes qualify under 80C |
| Tenure | 5 years (extendable by 3 years) | 7 days to 10 years |
| Premature Withdrawal | Allowed with a penalty | Allowed, but penalties vary |
| Interest Payout | Quarterly | Monthly/Quarterly/Half-yearly/Annually |
To open an IOB SCSS account, the following documents are required:
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The IOB Senior Citizen Savings Scheme (SCSS) is a secure and reliable investment option for retirees seeking steady income and tax benefits. With attractive interest rates, quarterly payouts, and government backing, this scheme is a preferred choice among senior citizens. Though the interest earned is taxable, the safety and guaranteed returns make it a worthwhile investment. Individuals looking for low-risk and fixed-income sources post-retirement should consider IOB SCSS as a viable investment option.
The current interest rate is around 7.4% per annum, subject to quarterly revisions by the government.
No, currently, IOB does not offer online SCSS account opening. You need to visit the nearest branch to apply.
SCSS offers higher interest rates and tax benefits under Section 80C, making it a better option for senior citizens compared to regular FDs.
No, NRIs are not eligible to invest in SCSS.
The initial lock-in period is 5 years, which can be extended by 3 more years.
Yes, premature withdrawal is allowed but with a penalty of 1.5% before 2 years and 1% after 2 years.
The minimum deposit is ₹1,000, and the maximum limit is ₹15 lakh.
Yes, the interest earned is fully taxable as per the account holder’s income tax slab.
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