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What are the special benefits available to senior citizens in Indian banks?

Date: 29 Aug 2016    Group: Finance and Investments    Category: Banking   

The senior citizens are entitled for few special benefits/concessions in India. What are the special benefits available to senior citizens in the banks of India? Is there any higher rate of interest applicable in the cases of senior citizens?

What are the benefits offered to a senior citizen, when he opens any kind of bank account in India?

Author: Reena Upadhya    29 Aug 2016      Member Level: Silver     Points : 4  (Rs 4)    Voting Score: 0

Special benefits offered by banks of India to senior citizens:-
1) Many Indian banks offer special additional interest rate which is actually more than that of normal interest rate that is given to others.
2) This additional interest rate is given on all sizes of deposit amount to senior citizens.
3) Senior citizen fixed deposit schemes are also introduced which is same as regular fixed deposits but rate of interest is more when compared to regular fixed deposits.
4) Senior fixed deposits also has a facility of nomination in which senior citizen who is depositor here can declare a person.
5) Senior citizen fixed deposits also serve as tax saver as it will help in deducting tax as per IT Act.
6) Senior citizen fixed deposits can be closed prematurely and will not be levied with any sort of penalties unlike regular FDs.
7) Interest rates offered on fixed deposit for senior citizens is 0.5% per annum higher.

Author: Sheo Shankar Jha    29 Aug 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Senior citizens enjoy 0.5 percent more interest per annum than the normal citizens. Moreover, they are required to fill up either 15G or 15 H form depending upon their ages to claim exemption from income - tax exceeding an amount of Re 10000/- . Moreover, they can discontinue their fixed deposit at any moment for which no penalty is to be levied.Care is being taken of the senior citizens by offering them interest on monthly, Quarterly, Halfyearly basis and if they like, they can avail the facility of earning interest on yearly basis as well.
In some private banks such as the Axis - bank, Kotak - bank and ICICI banks, the senior citizens can avail personalised service with respect to their fixed deposits and they can drop in their residence on their request. For the senior citizens, there is the policy of insurance to the tune of Re two lakh on a minor premium of Re 12/-. They enjoy the nomination - facility of nomination on their deposites.

Author: Mahesh    30 Aug 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Here are some of the special benefits for senior citizens offered by banks.

1. In case of PSU banks, the services such money transfer at home, ATM withdrawals etc costs less than the private banks.
2. In case Fixed deposit and recurring deposit it carries 0.5% higher rate of interest than the regular citizens.
3. TDS reported for income more than 10K is exempted for the senior citizens and super senior citizens.
4. Cheque, remittance and deposit carries less service fees in the banks for the senior and super senior citizen.
5. Overall banking service charges are less for the senior and super senior citizens.
6. There are no exit fees on account closure, FD closure etc for the senior citizens.

These are some of the benefits being applied by the banks.

Author: Venkiteswaran.    02 Sep 2016      Member Level: Diamond     Points : 4  (Rs 4)    Voting Score: 0

1. Higher rate on fixed deposits: Banks generally allow higher rate of interest in fixed deposits for senior citizens. The actual ate varies from bank to bank. There was even a 0.75 % increase once, but now average is 0.5%.
2. The entrance is senior citizen friendly: The gates and entrance steps should have handrails to help senior citizen to hold on for support. The earlier usage of security chains on collapsible gates, making people to bend down and enter (to prevent fast passage, as security precaution) was discontinued as that caused hardships to senior citizen.
3. Banks allow Pensioner's Medical Benefit advance to senior citizen drawing pension from their banks.

4. The compulsion of legal heir joining in documentation for pension advance and medical advance for senior citizen were relaxed by most banks.
5. Selected authorised banks open Senior Citizen Savings Scheme under central government scheme for senior citizen, which has higher rate than normal bank FD rates. The maximum allowed is Rupees 15 lakhs.
6.Banks are given directions to serve senior citizen out of turn also, without making them wait more.

Author: Partha Kansabanik    07 Sep 2016      Member Level: Diamond     Points : 4  (Rs 4)    Voting Score: 0

The benefits given to the senior citizens by the banks in India are indicated below:-

1.Senior citizens enjoy 0.5 % more interest (per annum) than the normal account-holders.
2. The senior citizens are required to fill 15G or 15H form depending upon their ages, to claim exemption from income tax exceeding an amount of Rs. 10000/- .
3. Senior citizens can discontinue their fixed deposit at any time without any penal deduction for such discontinuation.
4. Senior citizens' cases are taken up on priority basis in the bank, so that they don't have to wait longer in the queue.

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