The Bank of Maharashtra offers the Senior Citizen Savings Scheme (SCSS), a government-backed savings plan that ensures financial security for senior citizens. The scheme offers attractive interest rates, tax benefits, and a secure investment opportunity, making it a preferred choice for retirees.
The interest rate for SCSS is set by the Government of India and revised quarterly. As of the latest update, the rate stands at 8.2% per annum. Investors should check with the Bank of Maharashtra for the most current rates.
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To invest in the Senior Citizen Savings Scheme, the applicant must meet the following criteria:
Age Criteria:
Residency Status: Only Indian residents are eligible. NRIs and HUFs are not permitted to invest.
Investment Limit: The maximum investment limit is ₹30 lakh per individual.
| Feature | Senior Citizen Savings Scheme (SCSS) | Fixed Deposit (FD) |
| Interest Rate | Higher (Government-Backed) | Varies with banks |
| Tenure | 5 Years (Extendable to 8) | Flexible (7 days to 10 years) |
| Tax Benefits | Under Section 80C | Limited tax benefits |
| Premature Withdrawal | Varies with the bank | Allowed with varying penalties |
| Risk Factor | Secure (Government-Backed) | Varies with bank |
The process to apply for the Bank of Maharashtra SCSS is simple:
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The Bank of Maharashtra Senior Citizen Savings Scheme (SCSS) is an excellent investment avenue for retirees looking for a safe and high-yielding option. With government backing, attractive interest rates, tax benefits, and regular income payouts, it provides financial stability for senior citizens. While SCSS offers higher returns compared to fixed deposits, investors should also consider the tax implications before investing. This scheme is ideal for those looking for a secure, long-term savings option post-retirement.
Individuals aged 60 years and above, retired employees aged 55-60 years, and defense personnel aged 50 years and above can open an account.
The interest rate for SCSS is revised quarterly. As of now, it stands at 8.2% per annum.
Yes, SCSS generally offers higher interest rates, government-backed security, and tax benefits under Section 80C, making it more attractive than fixed deposits.
Yes, the scheme allows a one-time extension of 3 years after completing the initial 5-year tenure.
Yes, deposits made in SCSS qualify for tax deductions under Section 80C up to ₹1.5 lakh per year.
No, Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to invest in SCSS.
Yes, premature withdrawal is allowed after one year, but penalties apply.
Currently, SCSS applications require a physical visit to the bank. However, you can check for updates on the Bank of Maharashtra’s official website.
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