HIGHLIGHTS
- The Canara Bank’s Senior Citizen Savings Scheme is designed with the objectives of fixed returns and thereby financial security for the seniors.
- It is an excellent plan for retirees seeking a risk-free but dependable, regular income.
- It provides tax benefits, and guaranteed returns, and is easy to apply for anyone above 60 years of age.
Retirees seek safe and stable sources of income for a good post-retirement life. The Canara Bank Senior Citizen Saving Scheme ensures just that: fixed returns and low risk in terms of income. It is a dependable safe haven for those searching for a stable source of income and peace of mind, away from the vagaries of the stock market.
Table of Contents
Canara Bank Senior Citizen Saving Scheme Interest Rates (2024)
| Tenure | Annual Interest Rate for Senior Citizens |
| 1 year to 2 years | 7.5% |
| 2 year to 3 years | 7.75% |
| 3 year to 5 years | 8% |
| 5 years | 8.25 |
These special rates are offered for senior citizens, hence giving much higher returns than the regular fixed deposit rate.
Canara Bank Senior Citizen Saving Scheme What is it?
Canara Bank Senior Citizen Saving Scheme: It is a scheme specifically designed for persons above 60 years of age, wherein the deposits earn more interest with simultaneously fixed returns guaranteed. As it is a government-backed scheme, it is both secure and reliable as an investment tool. It suits those who seek return stability rather than expecting greater returns due to riskier investments.
Comparison between the Canara Bank Senior Citizen Savings Scheme (SCSS) and Fixed Deposits:
| Particulars | Senior Citizen Savings Scheme (SCSS) | Fixed Deposit of Canara Bank (for Senior Citizens) |
|---|---|---|
| Rate of Interest | 7.4% (as of July to September 2020) | Ranges from 3.00% to 6.00% |
| Maturity Period | 5 years | 7 days to 1 year (short-term) and 5 to 10 years (long-term) |
| Tax Benefit (On Returns) | Taxable | Taxable |
| Tax Benefit (On Investment) | Applicable | Applicable |
| Premature Withdrawal | After 1 year (1.5% charge) | 1.00% penalty |
Canara Bank Senior Citizen Savings Scheme (SCSS)
Key Features :
- Minimum Deposit: ₹1,000 with multiples thereof.
- Maximum Deposit: There is no fixed upper ceiling, and it can be flexed as needed.
- Interest Payment: Quarterly compounded, thus giving good returns to retirees.
- Lock-in Period: Mostly 5 years, but withdrawal can be made after certain conditions within the same period.
Eligibility and How to Apply
Eligibility:
Above the age of 60. Volunteers can apply above the age of 55.
Eligible customers can walk into any Canara Bank branch or access it on the online banking platform.
This is an extremely suitable scheme for retirees who always want sure-shot returns and have no type of worries on account of market volatility.
Required documents:
- Identification Proof: A valid government-issued ID (e.g., Aadhaar Card, PAN Card, Voter ID).
- Address Proof: Proof of current address, which may include a utility bill, Aadhaar card, or any other government-issued address document.
- Age Proof: Document verifying the applicant’s age, such as a birth certificate, Aadhaar card, or passport.
- Passport-Size Photographs: Two recent passport-sized photos.
Here’s why you should opt for this scheme:
Retirees who require capital income post-retirement.
Investors who are risk-averse with more concern for safety than high but uncertain returns.
FAQs
Can I withdraw my money before maturity?
Yes. However, premature withdrawal is penalized. It gives you a cushion for emergency withdrawal.
Is the interest earned taxable?
Yes, interest income is taxable, and TDS would apply as per the interest payable during the year.
Is a non-resident Indian eligible to open an account?
No, this scheme is presently available for opening by a resident Indian senior citizen alone.
