Bank of Baroda Senior Citizen Savings Scheme (SCSS) account rules: Senior Citizens can close their SCSS accounts in Bank of Baroda (BoB) at any time and there is no additional condition that the bank imposes on accountholders for premature closure, the bank said in an email to FE PF Desk.
“The Senior Citizen Savings Scheme (SCSS) is a Government Deposit Scheme and the Bank follows the guidelines as stipulated by the Ministry of Finance and advised by the National Savings Institute. The account holder may withdraw the deposit and close the account at any time,” the bank said.
However, premature closure of SCSS accounts is subject to the following conditions:
- If the account is closed within one year of the opening of the account, the interest amount shall be recovered and the principal amount shall be paid to the account holder.
- If the account is closed after one year but before the expiry of two years of the opening of the account, an amount equal to 1.5% of the principal shall be deducted and the balance shall be paid to the account holder.
- In case the account is closed on or after two years of account opening, an amount equal to 1% of the principal shall be deducted and the balance shall be paid to the account holder.
Also Read: Should Senior Citizens close old SCSS account and invest in a new one for higher interest?
In case the SCSS account has been extended for a further period of 3 years by a senior citizen, such an account can be closed at any time after one year from the date of extension.
“In cases of extension, where the account holder has extended the SCSS account for a further period of 3 years – the account holder may close the account any time after one year from the date of extension of account without any deduction,” the bank said.
No additional condition for premature closure
The bank said that apart from the above-mentioned penalty, there is no additional condition imposed by the bank for the premature closure of SCSS accounts.
“As stated, a customer can prematurely close their SCSS account at any time. However, they have to incur the corresponding penalty,” the bank said.
How to close BoB SCSS account
For closing of an SCSS account, senior citizens need to visit the Bank of Baroda branch and submit his/her request in the prescribed form along with documents. Account closure can be completed on the same day by the branch, the bank said.
Also Read: Disadvantages of Senior Citizen Savings Scheme (SCSS): 5 limitations you should know before investing
How to open SCSS account in Bank of Baroda
A senior citizen can open an SCSS account by visiting the Bank of Baroda branch nearest to them. The bank said that at present, SCSS account opening facility is not available online. However, the same is under process to facilitate online services for the SCSS customer.