The interest rate for the Senior Citizens Savings Scheme (SCSS) offered by Punjab National Bank (PNB) is 7.4% per year.
Understanding PNB's Senior Citizens Savings Scheme Interest Rate
The Senior Citizens Savings Scheme (SCSS) is a government-backed retirement savings scheme designed to provide a regular and secure income source for senior citizens. Punjab National Bank facilitates this scheme, offering a competitive interest rate that helps ensure financial stability for its eligible account holders.
Key Features of PNB's Senior Citizens Savings Scheme
Here's a breakdown of the essential features related to the PNB Senior Citizens Savings Scheme:
| Feature | Details |
|---|---|
| Interest Rate | 7.4% per year |
| Interest Computation | Quarterly |
| Taxability | Interest is completely taxable |
| Tenure | 5 years (can be extended by 3 years) |
The interest accrued on the PNB Senior Citizens Savings Scheme is computed quarterly, providing a steady stream of income. It's important for investors to note that the interest earned from this scheme is entirely taxable as per the prevailing income tax laws. The standard tenure for this scheme is 5 years, offering a fixed investment period, which can be extended for an additional three years.
Who Can Benefit from the SCSS?
The Senior Citizens Savings Scheme is primarily targeted at:
- Indian residents aged 60 years or above.
- Individuals aged 55 to 60 who have retired on superannuation or Voluntary Retirement Scheme (VRS), provided the investment is made within one month of receiving retirement benefits.
- Retired defense personnel (excluding civilian defense employees) aged 50 and above.
This scheme serves as a popular and secure investment option for senior citizens looking to generate regular income from their savings post-retirement.
