Advantages Of Opening A Senior Citizen Savings Account

By Author: Arjit
Total Articles: 18
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Many senior citizens above the age of 60 living in India require funds for medical treatments and other emergencies. Since they are growing old, their health deteriorates, making them dependent on medicines and doctors for treatment. They spend their entire lives working for the family and expect some rest, with a Savings Account to cover their expenses.
With a Savings Account designed by banks to meet their needs, you can also submit an account opening application for your parents and the elderly. They can operate the account at their will without a cap on the transaction frequency at the ATM. You get similar benefits to a Special Senior Citizen Savings Account. Here are some of them:
Locker charges
As a privileged customer, you get a 25% discount on annual locker rental charges. You save a considerable amount when you open a Bank Account and receive the benefits of safe, secure storage for assets and funds. Pensioners can also open an account to avail the facility. There is an additional ...
... 50% waiver on the processing fees of the Reverse Mortgage Loan.
Transactions through the Debit Card
When you open such accounts, you get a Visa Platinum Debit Card for free with a cash withdrawal limit of Rs. 1 lakh and a PoS purchase limit of up to Rs. 2 lakh per day. You can make unlimited transactions for free from any authorised ATM branch.
Demat maintenance
There is a fee waiver on the Demat yearly maintenance charges for the first year. You can also invest in the share market using the funds in your Demat Account.
Life Insurance facility
All customers aged 18 to 70 are eligible to receive Life Insurance benefits upon opening an account. Any Indian resident between 18 years and 70 years of age can avail the life insurance cover from “India First Life Insurance Co. Ltd” (IFLIC). They can get up to an amount of Rs. 5 lakh after payment of the required premium and submission of the simple Health Declaration Form.
High interest rates
You can invest your money in Fixed Deposits, which are considered safer than equity investments and offer fixed returns. In India, senior citizens get higher interest rates (up to Rs. 50,000) than the public. The same rules apply to Savings Accounts as well. You also get tax deductions of up to Rs. 1.5 lakh under Section 80 C of the Income Tax Act (1961).
The minimum exemption limit is Rs. 3 lakh. Similarly, for super senior citizens (those aged 80 and above), no tax is payable unless their annual income exceeds Rs. 5 lakh. Under Section 80D, you are allowed a maximum deduction of Rs. 50,000 for the Health Insurance premium. Section 80DDB allows a deduction of up to Rs. 1 lakh for medical treatment of specified diseases, such as AIDS, neurological disorders, and cancer.