India's largest public sector bank State Bank of India offers a saving scheme for senior citizens. The bank allows any depositor to open an account at any deposit office by making an application along with the amount of deposit in multiple of one thousand rupees, along with age proof. "A depositor may operate more than one account subject to the condition that deposits in all accounts taken together shall not exceed the maximum limit of Rs 15 lakh and provided that deposits by depositors shall be restricted to the retirement benefits or Rupees Fifteen lakhs whichever is lower," explained the bank on its website.

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A depositor may open the account in his individual capacity or jointly with spouse.

SBI Senior Citizen Saving Scheme Eligibility:

1. An individual who has attained the age of 60 years and above on the date of opening of an account.
2. Who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account.
3. Who has retired at any time before the commencement of these rules and attained the age of 55 years or more on the date of opening of an account,
4. The retired personnel of Defence Services (excluding civilian Defence employees) irrespective of the above age limits subject to fulfilment of other specified conditions.
5. Should be an Indian national residing in India

Deposits:

There shall be only one deposit in the account in multiple of one thousand rupees not exceeding Rupees Fifteen lakhs. Deposits can be made using cash (below Rs 1 lakh) or cheque or demand draft drawn in favour of the depositor and endorsed in favour of the deposit office.

Withdrawals:

Permitted after one year of opening the account but with a penalty.

Renewal:

The depositor may extend the account for a further period of three years after the maturity period of five years. An application in Form B should be made within a period of one year after the date of maturity period.

Interest on Deposit:

The deposit made under these rules shall bear interest @ 8.60% p.a. from the date of deposit payable at the end of each calendar quarter e.g. 31st March / 30th June / 30th September / 31st December.

Closure on maturity: 

The deposit made at the time of opening of account shall be paid by the concerned deposit office after the expiry of five years from the date of opening of the account on the production of the passbook accompanied by a written application (withdrawal form).

In case a depositor does not close the account on maturity and also does not extend the account, the account will be treated as matured and the depositor will be entitled to close the account at any time subject to the condition that the post-maturity interest at the rate as applicable to the deposits under the Post Office Savings Accounts from time to time will be payable on such matured deposits up to the end of the month preceding the month of the closure of the account.

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Premature closure of Account:

The premature closure is permitted only after one year of the opening of an account. However, the following conditions will remain in place:

1. In case the account is closed after the expiry of one year but before the expiry of two years from the date of opening of the account, an amount equal to one and half percent of the deposit shall be deducted and the balance paid to the depositor.

2. In case the account is closed on or after the expiry of two years from the date of opening of the account, an amount equal to one percent of the deposit shall be deducted and balance paid to the depositor.