HDFC Bank offers 8.2% interest on SCSS accounts

HDFC Bank has started offering deposits under the Senior Citizens' Savings Scheme (SCSS) with an interest rate of 8.2%. This government-backed scheme is aimed at providing a steady income for retired individuals. The SCSS is designed for senior citizens, offering them a reliable source of income. The interest rate stays fixed for five years after the investment is made, although it is reviewed every quarter. To open an SCSS account with HDFC Bank, applicants need a few documents. These include a completed application form, a passport-size photograph, and self-attested copies of their PAN and Aadhaar cards. There may be additional documentation based on eligibility. For KYC compliance, both PAN and Aadhaar are necessary. There are no fees associated with the opening of the account or changes to nominations, but there are charges for certain services like issuing a duplicate passbook or account statements. The SCSS requires a minimum deposit of Rs 1,000, and deposits can go up to Rs 30 lakh in multiples of Rs 1,000. Interest payments are made quarterly, making it a consistent income option for retirees. However, the interest earned on SCSS deposits is taxable, but no TDS is deducted if the relevant forms are submitted. Tax benefits are available under Section 80C of the Income Tax Act for these investments. If a depositor wishes to withdraw funds before the end of the five-year term, there are penalties. An interest recovery applies if the account is closed within the first year. After that, charges depend on how long the account has been open. Previously, only certain banks were authorized to offer SCSS accounts. HDFC Bank is now joining this list, providing more options for senior citizens seeking secure investment avenues.