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 all their lives working for the family and are expecting some rest with a savings account to manage their expenses.
With a saving 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. Here are the benefits it offers:
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 facilities of safe and secured storage of assets and funds. Pensioners can also open an account to avail the facility. There is an additional 50% waiver on processing fees of Reverse Mortgage Loan.
Transactions through the debit card: When you apply for a saving bank account opening, 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 annual 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 between 18 years to 70 years are eligible to benefit from life insurance benefits upon opening the 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 required premium and submission of simple Health Declaration Form.
High-interest rate deposits: You can invest your money in fixed deposits, as they are considered safer than investing in equity and promise fixed returns. In India, senior citizens get higher interest rates (up to Rs. 50,000) than the public. The same rules apply to an online savings account as well.
You can 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 above the age of 80), 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 health insurance premium. Section 80DDB allows a deduction of Rs. 1 lakh for medical treatment of specified diseases such as AIDS, neurological disorders, cancer, etc.
All About Bank And Loans in India 