Investing your money is a very smart option as it ensures that you earn a fixed income every year. As a senior citizen, you probably have a lot of money saved, which can be put to good use. The age old saying “You have to spend money to earn money” rings very true especially when it comes to investments. It is always good to have some money locked away in a Fixed Deposit account as security, but one can also choose to invest it in other ways. For example - The Senior Citizen Saving Scheme.
SCSS (senior citizen saving scheme) is a type of investment scheme launched by the Government of India to encourage the senior citizens of the country to invest. An individual can deposit a good sum of money through this scheme for a period of five years and earn a very good rate of interest on the same.
Union Bank of India SCSS Features
- Tenure – The tenure of the Union Bank of India Senior Citizen Saving Scheme is five years. This period can be extended by three years after maturity
- Interest Rate – The senior citizen saving scheme interest rate is 9.3 percent, which is computed quarterly and is fully taxable
- Investment – The investment has to be made in multiples of Rs.1000 and the maximum limit is Rs.15 Lakhs
- Premature Withdrawal Facility – A depositor is allowed to withdraw the funds after a year of having opened the account, but he or she has to pay a penalty for the same
- Nomination – A depositor can nominate more than one person
- Type of Account – An individual can either have a single or a joint account. Joint account is allowed to be opened only with the spouse
Union Bank of India SCSS Eligibility
- Anyone who is 60 years old and above is eligible to apply for the Union Bank of India Senior Citizen Saving Scheme
- Anyone who is 55 years old, but has retired is eligible to apply for this scheme provided that he or she makes the deposit within a month from receiving the retirement benefits
- Retired Defence Services personnel (excluding employees of Civilian Defence) are eligible to apply for this scheme. The above age limits are not applicable to them
- Hindu Undivided Families (HUF) and NRIs are not eligible to apply for this scheme
Union Bank of India SCSS Application Forms
The application forms for Union Bank of India Senior Citizen Saving Scheme is available at all the authorized branches of Union Bank of India.
1. What is the rate of interest offered by the Union Bank of India Senior Citizen Saving Scheme?
The rate of interest offered by the Union Bank of India Senior Citizen Saving Scheme is 9.3 percent.
2. Can I extend my Senior Citizen Saving Scheme account after maturity?
Yes, you can extend your Senior Citizen Saving Scheme account by 3 years after maturity.
3. What is the minimum amount of deposit?
The minimum amount to be deposited is Rs.1000.
4. Can I withdraw the money before the period of five years is over?
Yes, you can withdraw the money after 1 year of depositing, but you will have to pay a penalty.
5. Can I open a joint account with my son or daughter?
No, under this scheme you can only open a joint account with your spouse.