HDFC Bank to Accept Senior Citizens’ Savings Scheme Deposits — Big Boost for Investors!
On Monday, March 17, 2025, HDFC Bank released a public statement confirming that it will now accept deposits under the Senior Citizens’ Savings Scheme (SCSS). This move positions HDFC Bank among the leading financial institutions handling government-backed savings programs. According to the Controller General of Accounts and the Press Information Bureau, HDFC Bank is currently ranked among the top three agency banks authorized by the Indian government to handle such deposits.
This strategic step strengthens HDFC Bank’s role in providing secure investment options tailored to the financial needs of senior citizens, reinforcing the bank’s commitment to expanding its portfolio of government-backed savings products.
What Is the Senior Citizens’ Savings Scheme (SCSS)?
The Senior Citizens’ Savings Scheme (SCSS) is a government-backed savings initiative designed specifically for individuals aged 60 years and above. It aims to provide a stable and regular income stream to retirees, making it a popular investment choice among senior citizens seeking financial security.
Under the SCSS, depositors receive quarterly interest payments, ensuring a steady source of income throughout the scheme’s tenure. The scheme has a tenure of 5 years, which can be extended for an additional period if desired. Since it is a government-backed scheme, it is considered a relatively low-risk investment option, providing both security and consistent returns to senior citizens.
Current SCSS Interest Rate and Revisions
As of March 2025, the annual interest rate for SCSS deposits stands at 8.2%. This rate was set by the government for the financial year 2024-25 and is subject to periodic revision based on broader economic conditions and government policies.
Interest on SCSS deposits is credited quarterly, ensuring that senior citizens benefit from regular cash flow to meet their financial needs. Any future changes to the interest rate will be determined and communicated by the government at the beginning of each financial period.
Eligibility Criteria for SCSS
To invest in the Senior Citizens’ Savings Scheme, individuals must meet specific age and retirement-related criteria:
1. Senior Citizens (60 years and above): Any individual aged 60 years or older is eligible to open an SCSS account.
2. Retired Individuals Aged 55–60: Individuals who have retired under superannuation or the Voluntary Retirement Scheme (VRS) at the age of 55 years can open an SCSS account, provided they do so within one month of receiving their retirement benefits.
3. Retired Defence Personnel: Defence personnel who have served under the Indian government can open an SCSS account upon attaining 50 years of age, regardless of their retirement age.
4. Joint Accounts: A depositor can open an SCSS account individually or jointly with their spouse. However, the primary holder should meet the age-related eligibility criteria.
Tax Benefits Under SCSS
Investments made under the Senior Citizens’ Savings Scheme qualify for tax benefits under Section 80C of the Income Tax Act, 1961. Individuals can claim a tax deduction of up to ₹1.5 lakh annually on their SCSS investments.
However, there are certain tax implications related to interest earned on SCSS deposits:
• If the total annual interest earned exceeds ₹50,000, the government will deduct TDS (Tax Deducted at Source) at the applicable rate.
• If the depositor’s total taxable income falls below the minimum taxable threshold, they can submit Form 15H to the bank to avoid TDS deduction.
Other Government-Backed Savings Schemes Offered by HDFC Bank
In addition to SCSS, HDFC Bank also facilitates deposits under other popular government-backed savings schemes, including:
• Sukanya Samriddhi Account Scheme: A savings scheme for the benefit of girl children, providing attractive interest rates and tax benefits.
• Public Provident Fund (PPF): A long-term savings scheme with tax-free returns and annual compounding, ideal for building a retirement corpus.
By expanding its range of government-backed savings options, HDFC Bank aims to offer more diversified and secure investment opportunities to its customers.
About HDFC Bank
Founded in 1994, HDFC Bank is one of India’s largest private-sector banks, providing a wide range of financial services including retail banking, wealth management, and corporate banking. The bank is listed on both the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange), reflecting its strong presence in the Indian financial market.
As of 11:45 AM on Tuesday, HDFC Bank’s share price was trading at ₹1,727, marking a 1.03% increase from the previous day’s closing price. This reflects a positive market response to the bank’s decision to accept SCSS deposits, signaling investor confidence in the bank’s strategic direction.
Other Banks Accepting SCSS Deposits
Apart from HDFC Bank, several other banks in India are authorized to accept deposits under the Senior Citizens’ Savings Scheme. These include a mix of public and private sector banks:
• State-Owned Banks: State Bank of India, Bank of Baroda, Punjab National Bank, Indian Bank, Union Bank of India, and Canara Bank.
• Private Banks: ICICI Bank Ltd. and IDBI Bank Ltd.
• Regional Banks: State Bank of Hyderabad, State Bank of Patiala, and State Bank of Bikaner & Jaipur.
• Merged or Acquired Banks: Andhra Bank, Allahabad Bank, Vijaya Bank, and Dena Bank (now integrated into larger banks).
This broad network of banks ensures that senior citizens across the country have easy access to SCSS deposits and related services.
This article is intended for educational and informational purposes only. The financial instruments and securities mentioned are provided as examples and should not be interpreted as recommendations or investment advice. Readers are encouraged to conduct their own research and consult financial professionals before making any investment decisions.
Investments in financial markets are subject to market risks. It is advisable to carefully read all related documents and disclosures before investing.
