SBI Senior Citizens Scheme: Earn ₹60,150 Every 3 Months—Here’s How!

Retirement is a time to relax and enjoy life, but financial security remains a priority. For senior citizens in India, the State Bank of India (SBI) Senior Citizens Savings Scheme (SCSS) is one of the best investment options. It offers high returns, safety, and a steady income, making it ideal for retirees looking to maximize their savings.

If you’re wondering how to earn ₹60,150 every three months through this scheme, this guide will break it down in simple terms. We’ll cover how the SBI SCSS works, eligibility criteria, investment limits, interest rates, tax benefits, and how you can apply today.

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What is the SBI Senior Citizens Savings Scheme (SCSS)?

The SBI Senior Citizens Savings Scheme (SCSS) is a government-backed fixed deposit plan designed for senior citizens. It offers higher interest rates compared to standard fixed deposits, ensuring retirees receive a stable quarterly income.

Unlike other investments, SCSS is a low-risk, high-return option, backed by the Government of India. This makes it one of the safest and most reliable choices for senior citizens looking to earn regular income post-retirement.

How to Earn ₹60,150 Every 3 Months?

1. Understanding the Interest Rate

As of 2024, the SBI SCSS offers an interest rate of 8.20% per annum. Interest is paid quarterly, meaning every three months you receive a payout based on your deposited amount.

2. Investment Calculation

To achieve a quarterly income of ₹60,150, let’s calculate how much needs to be invested:

• Investment Amount: ₹30,00,000 (Maximum limit)
• Annual Interest Earned: ₹30,00,000 × 8.20% = ₹2,46,000
• Quarterly Interest Earned: ₹2,46,000 ÷ 4 = ₹61,500

So, if you invest ₹30 lakh, you will earn ₹61,500 every three months, which slightly exceeds ₹60,150.

Who is Eligible for the SBI SCSS?

Before investing, make sure you meet the eligibility criteria:

1. Senior Citizens: Indian citizens aged 60 years and above.
2. Early Retirees: Individuals aged between 55 and 60 years, retired under superannuation or VRS (Voluntary Retirement Scheme).
3. Defense Personnel: Retired defense personnel aged 50 and above.
4. Exclusions: Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible.

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Step-by-Step Guide to Investing in SBI SCSS

Step 1: Visit an SBI Branch or Post Office

You can open an SCSS account at any SBI branch or designated post offices.

Step 2: Fill Out the Application Form

Obtain and complete the SCSS application form. You can also download it from the SBI website.

Step 3: Submit Required Documents

Provide the following documents:

• KYC Documents (Aadhaar, PAN Card, Passport, or Voter ID)
• Age Proof (Birth Certificate, Senior Citizen Card, or Passport)
• Retirement Certificate (for early retirees)
• Photographs (2 passport-sized)

Step 4: Make the Deposit

• Deposit a minimum of ₹1,000 and a maximum of ₹30 lakh.
• Payments can be made through cash (up to ₹1 lakh), cheque, or demand draft.

Step 5: Receive Your Passbook

Once processed, you’ll receive a passbook containing account details and deposit information.

Pros and Cons of SBI SCSS

Pros:

• Government-backed scheme ensuring safety
• Higher interest rate compared to regular FDs
• Quarterly payouts provide a steady income
• Tax benefits under Section 80C

Cons:

• Interest earned is taxable
• TDS is applicable if interest exceeds ₹50,000 per year
• Premature withdrawal attracts penalties

SBI Senior Citizens Scheme (FAQs)

1. Can I extend my SBI SCSS investment after maturity?

Yes, the SCSS can be extended for an additional 3 years after the initial 5-year tenure.

2. Is premature withdrawal allowed?

• Before 2 years: 1.5% penalty on the deposit amount
• After 2 years: 1% penalty

3. Can I open multiple SCSS accounts?

Yes, but the total investment cannot exceed ₹30 lakh.

4. What happens in case of the investor’s death?

The nominee/legal heir receives the deposit, and the account is closed.

Also check: Fixed Deposit: How many FD accounts can a person have? Know the complete details