Senior Citizen: Here are some important facts you should know about senior citizen accounts


Renewal of accounts of senior citizens

Once the age of senior citizens is checked for accepting deposits under the scheme, the branch should not ask for proof of age for renewal of deposits or for taking deposits from them thereafter.

Operation of joint deposits

If the joint holder is less than sixty years of age while jointly receiving their deposits under the special scheme for senior citizens, then the benefit of additional interest (more than the rate of general interest) will be given only if the senior citizen in the application Name should be first name.

Minimum deposit amount

There is no restriction on the minimum amount.

Additional interest

The branches of the bank are authorized to pay senior citizens additional interest of 0.50% on new deposits of all periods and on renewal of existing deposits.

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Bulk deposits

In case of bulk deposits (Rs. 15 / – lakhs and above), the depositor will not be given double benefit of interest ie high interest rate / extra rate for bulk deposits as senior citizen.

Interest rate on loans against deposits of senior citizens

The rate of interest charged on loans against deposits of senior citizens will be 1.25% higher than the deposit rate.

Government Savings Scheme for Senior Citizens

This scheme is available to senior citizens aged 60 years (50 years for those who have retired under voluntary or special voluntary scheme).

The rate of interest on deposits is 7.4%, payable quarterly. However, the interest is fully taxable.

Deposit account can be opened by single name or jointly with spouse.

Nomination facility is available for depositors.

The maximum investment limit of Rs.15,00,000 / – can be invested in multiples of Rs.1000 / -.

The period of deposit is 5 years which can be extended for 3 years further.

On payment of penalty, premature withdrawal facility will be available after one year.

Other Concessions / Discounts

ATM cards will be provided free of charge to all senior citizens who fulfill the eligibility criteria set by the bank for issuing ATM cards.

The facility of free remittance will be available for personal use of senior citizens by debiting savings bank accounts.

For senior citizens whose accounts are in rural branches, Rs. The collection fee is waived on collection of outstation checks of pension up to Rs.5000 / -.

Collection of pension bills / pension checks at par.

No queue facility

All our branches provide ‘no queue’ facility to our senior citizens. For this purpose special counters have been opened in big branches.

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Article first Appeared on Informalnewz


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