PNB Senior Citizens Savings Scheme: Are you aware about this retirement scheme being offered by India’s second largest public sector bank Punjab National Bank (PNB)? The Senior Citizens Savings Scheme (SCSS) which was launched by the Government of India in 2004 offers guaranteed retirement income. This deposit scheme is a safe investment instrument that will ensure a regular income stream if you are a senior citizen. 

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You need to be an Indian citizen - 60 years of age. For those who have retired on superannuation or under a voluntary or special voluntary scheme, the age requirement is 55 years.  

The retired personnel of Defence Services (excluding Civilian Defence Employees) shall be eligible to invest on attaining the age of fifty years subject to the fulfilment of certain conditions. The minimum investment should be Rs 1000 while the maximum is Rs 15 lakh. Deposits can be made in multiples of Rs 1,000. 

The interest as applicable from time to time as per Government of India guidelines. The tenure is 5 years and can be extended by 3 more years. Account can be opened individually or jointly with spouse. 

Know how to open account:  

Open a savings bank account along with SCSS Account. You will need an account opening form which the branch will provide; two passport size photographs; address and identity proof; copy of Aadhar card is to be submitted at the time of opening of account. 

The SCSS is liquid, despite the 5-year stipulated lock-in. The liquidity is offered in the form of withdrawals subject to conditions and penalties. 

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Tax Implications 

Interest earned on the deposit is fully taxable and tax is deducted at source (TDS) as per applicable Income Tax Rules. However, if the income is not taxable, one has to provide form 15H or 15G so that no tax is deducted at source.