The PNB Senior Citizens Savings Scheme is available for individuals who are above 60 years of age. The depositors under this scheme can also choose to create a joint account along with their spouse, or avail the nomination facility available. Retirement is something that brings doubts and different complications with itself. However, there are many savings products that offer guaranteed income after the retirement and provides a lot of safety. The SCSS (Senior Citizens Saving Scheme) was launched in the year 2004.
This deposit scheme was introduced by the Government of India to offer returns that were guaranteed to all the senior citizens via an investment that is safe and secure.
The Punjab National Bank Senior Citizens Savings Scheme ensures that the senior citizens avail a steady flow of income after their retirement.
The applicant must be a resident of India in order to open an account.
The minimum age of the applicant must be 60 years. However, 55 year old applicants are also considered, who have opted for special or voluntary retirement or on superannuation. All the Defence Services retired personnel, excluding the civilian defence employees, are eligible for investing irrespective of age limits and are subject to fulfilment of the specified conditions.
The Punjab National Bank senior citizens savings Scheme interest rate is 7.4% per year. The interest for senior citizens savings scheme is computed quarterly. Also, the interest is completely taxable.
The tenure of the savings scheme offered by Punjab National Bank is 5 years. It can also be extended by three more years.
The nomination facilities are also available with the Punjab National Bank Savings Scheme.
The rates of interest that are applicable for this saving scheme will be duly notified by the Reserve Bank of India / Ministry of Finance before the 1st of April of that particular year and is also aligned with the G-Sec rates of the similar maturity. At present, the rate of interest in the Senior Citizen Savings Scheme deposit is 7.4% per year that is computed on a quarterly basis.
There is a five year lock in period of the Senior Citizen Savings Scheme deposit but it is liquid. Generally, the liquidity is available as withdrawals and it is subject to penalties and conditions.
The interest that is earned on the entire deposit amount is absolutely taxable. According to the ITR (Income Tax Rules) the tax is duly deducted at source. However, one can produce form 15G or 15H if the tax is not deductible. Showing these forms will lead to no deduction of taxes.
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