Senior citizens can now open SCSS accounts with HDFC Bank, earning a stable 8.2% interest

There’s great news for senior citizens looking for secure investment options! HDFC Bank, the largest private sector bank in India, has now been authorized to accept deposits under the Senior Citizen Savings Scheme (SCSS). Until now, this scheme was only available through post offices and public sector banks.

With this new development, HDFC Bank customers who qualify for SCSS can now open accounts at any branch across the country, benefiting from a stable 8.2% interest rate on their savings. The SCSS is a government-backed savings initiative designed to provide senior citizens with a fixed source of income after retirement.

HDFC Bank Becomes an Official Agency Bank

HDFC Bank has officially become an agency bank for the Government of India, allowing it to accept deposits under the SCSS program. The bank has assured that all eligible customers can visit any HDFC Bank branch to apply for the scheme.

Key Features and Benefits of SCSS at HDFC Bank

✔ Attractive Interest Rate: Earn 8.2% per annum, applicable from April 1, 2024, to March 31, 2025. The government periodically reviews and updates the interest rate.

✔ Fixed Lock-in Period: The scheme comes with a five-year tenure, ensuring stability for investors.

✔ Tax Benefits: Deposits made under SCSS qualify for tax exemptions under Section 80C of the Income Tax Act.

✔ Quarterly Payouts: Interest is paid out every three months, ensuring regular income flow for senior citizens.

Who Can Apply for SCSS?

• Senior citizens aged 60 years and above.
• Retired employees (superannuation) aged 55 years or older.
• Defense personnel who retired at 50 years or above.

HDFC Bank Strengthens Its Role in Government Schemes

HDFC Bank has been actively supporting government-backed financial programs. It already offers schemes such as the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY). In the 2023-24 financial year, the bank collected over ₹10 lakh crore in taxes, making it one of India's top three agency banks.

Parag Rao, HDFC Bank’s Country Head for Payments, Liability Products, Consumer Finance, and Marketing, expressed pride in the bank's inclusion in SCSS. He emphasized that this initiative allows senior citizens to access high-yield savings with government security while also enjoying tax benefits.

Other Banks Offering SCSS

Apart from HDFC Bank, several other banks are authorized to offer SCSS accounts, including:

Public Sector Banks:

• State Bank of India (SBI)
• Punjab National Bank (PNB)
• Bank of Baroda
• Bank of India
• Union Bank of India
• Canara Bank
• Central Bank of India

Private Sector Banks:

• ICICI Bank
• IDBI Bank

What This Means for Customers

With HDFC Bank now accepting SCSS deposits, senior citizens have greater flexibility and convenience in choosing where to invest their savings. Customers can now enjoy secure, high-interest savings with quarterly payouts and tax benefits, making retirement planning easier and more reliable.