Changes in Senior Citizen Savings Scheme interest rates and deposit limits this year have benefited senior citizens. The interest rate on SCSS deposits has increased to 8.2% in 2023, which is better than the 5-year fixed deposit interest rates offered by banks and post offices.
Senior Citizen Savings Scheme, abbreviated as SCSS, is very popular among senior citizens. Senior citizens invest more in this scheme. Recently the interest rate of this Senior Citizen Savings Scheme has been changed. Let’s take a look at all the details.;
Changes in Senior Citizen Savings Scheme interest rates and deposit limits this year have benefited senior citizens. The interest rate on SCSS deposits has increased to 8.2% in 2023, which is better than the 5-year fixed deposit interest rates offered by banks and post offices.
Already in Budget 2023, a senior citizen can deposit Rs. The government has announced a decision to allow deposits of up to 30 lakhs.
According to a report in The Financial Express, SCSS changes in interest rates and deposit limits have led to bumper collections from deposits in small savings schemes by the central government. It created a positive impact by providing financial support to the fiscal deficit.
6,52,000 new SCSS accounts were also added in the first three months of the financial year 2023-24. In the first quarter of the financial year 2022-23, only Rs 19,925 were deposited in SCSS accounts.
The government has increased the SCSS interest rate to 8.2% for the April-June quarter of the financial year 2023-24. The same rate will be applicable for the July-October quarter of this financial year.
There is no limit to the number of SCSS accounts that a senior citizen can have. According to the revised SCSS rules, the sum of all deposits made by a senior citizen in all his SCSS accounts should not exceed Rs.30 lakh.
SCSS Interest Income –
SCSS account matures in 5 years. But, it can be extended for another three years. The scheme pays quarterly interest on deposits to senior citizens. Although the SCSS interest rate is revised by the Finance Ministry on a quarterly basis. If a senior citizen opens an SCSS account today, he is eligible to earn 8.2% compound annual interest till maturity.
A senior citizen at 8.2% interest on Rs. 10,000 per quarter on a deposit of Rs. 205, the calculations show that interest can be earned. Rs. 30 Lakh Maximum Deposit Rs. 61,500 will earn quarterly interest.
