Banks provide senior residents numerous advantages, from banking providers to taxation. The following are a couple of advantages and privileges senior residents obtain from banks:
Free At Home Basic Banking Service: According to the Reserve Bank of India (RBI) mandate, banks should present primary banking providers freed from value at house to “Divyangjan”, differently-abled individuals, and residents aged 70 years and above.
Ashish Misra, chief working officer (COO) of retail banking at Fincare Small Finance Bank, mentioned free at-home banking providers supplied by banks embody money withdrawal and deposit providers, supply of demand drafts, know-your-customer (KYC) paperwork assortment, life certificates submission, earnings tax 15G/H kind assortment, and many others.
Misra added that every one banks have a devoted grievance redressal officer at their department places of work to deal with points associated to aged individuals.
Insurance Cover: Banks similar to IDFC and SBI present complimentary or nominal premium-paying private accident insurance cowl to senior residents with financial savings accounts at their financial institution.
S. Anand, chief govt officer (CEO) and co-founder of PaySprint, a neo-bank, mentioned the insurance premium will increase when an individual will get older, and typically it additionally will get tough to safe insurance protection. So, (*5*) to assist senior residents.
Senior Citizen Savings Scheme (SCSS): Banks, similar to Canara Bank, Union Bank of India, and many others., and publish places of work provide senior citizen financial savings schemes (SCSSs). People who opted for a voluntary retirement scheme (VRS) or superannuation within the age band of 55 to 60, retired defence workers above 50 and under 60 years, and different specified seniors can spend money on SCSS.
The scheme presently presents an rate of interest of seven.6 per cent, with tax deduction advantages beneath part 80C.
Convenient Physical Branch Banking: All banks are mandated by the RBI to create a particular counter to service senior residents’ wants. Senior residents can keep away from lengthy queues on the banks by availing of those particular counters.
Misra mentioned all Indian banks auto-convert an individual’s KYC-verified financial savings checking account to a senior citizen account by taking the age info from the KYC kind. Senior residents additionally get free checkbooks in sure banks.
Enhanced Interest Rate on Fixed Deposits: Banks provide increased rates of interest on mounted deposits to seniors. For instance, the Bank of Baroda (BoB) offers 6.6 per cent to senior residents on mounted deposits under Rs 2 crore for a one-year tenor. For others, it’s 6.1 per cent. On November 14, BoB elevated its retail deposit charges by 1 per cent (100 foundation factors) throughout numerous tenors and quantities.
“Senior citizens are always offered specialised and tailored services. At, the South Indian Bank, we offers unlimited transactions in other bank ATMs through debit cards, higher interest on FD Rates, door step banking services, concessional pricing on lockers and loans, complimentary lounge access at airports, higher transaction limits at POS terminals. We also offer sweep in sweep out facility to our customers to avail higher interest rates on funds parked in the savings account,” mentioned Sanchay Sinha, nation head, retail banking, South Indian Bank.
