senior citizens close scss accounts in bank of baroda at any time here know about rules smb
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Let us tell you that Senior Citizen Savings Scheme (SCSS) is a government deposit scheme and the bank follows the guidelines set by the Ministry of Finance and the advice given by the National Savings Institute. According to Bank of Baroda, the account holder can withdraw the deposit amount and close the account at any time. However, the following conditions have to be met for premature closure of SCSS accounts.
– If the account is closed within one year of account opening, the interest amount will be recovered and the principal amount will be paid to the account holder.
– If the account is closed after one year but before the expiry of two years from the date of opening of the account, an amount equal to 1.5% of the principal amount will be deducted and the remaining amount will be paid to the account holder.
– If the account is closed on or after two years of account opening, an amount equal to 1% of the principal amount will be deducted and the balance amount will be paid to the account holder.
– If the SCSS account has been extended by a senior citizen for a further period of 3 years, such account can be closed at any time after one year from the date of extension. The bank said, in cases of extension where the account holder has carried forward the SCSS account for a period of 3 years, the account holder can close the account at any time after one year from the date of extension of the account without any deduction.
The bank said that apart from the above mentioned penalty, no additional condition has been imposed by the bank for premature closure of SCSS accounts.
For closure of SCSS account, senior citizens have to visit the Bank of Baroda branch and submit their request in the prescribed form along with documents. The bank said that the account closure process can be completed by the branch on the same day.
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