Senior Citizen Savings Scheme Interest Rate 2023 & New Changes
The Government of India (GOI) has announced the new interest rate for the small savings scheme that is made effective from April 1, 2023.
Senior Citizen Savings Scheme Interest Rate 2023 - The government has also increased the rate of interest for senior citizens from 8% to 8.20% in this small savings scheme. This is applicable for the January to March 2023 quarter. This scheme is known as the Senior Citizens Saving Scheme (SCSS) for which interest rates are higher now.
Senior Citizens Saving Scheme (SCSS): New Changes
Apart from the hiking of SCSS interest rates, the maximum deposit limit has also been increased. Union Finance Minister Nirmala Sitharaman in her budget presentation for the financial year 2023-2024 also said that the highest deposit rates on SCSS will be doubled from 15 lakhs to 30 lakhs.
The small savings scheme interest rate is significantly higher than the PPF interest rate of 7.10% and FDO interest rate of 7%. Hence, if a senior citizen wants to invest in a tax-saving instrument, they can choose the SCSS, which has a maturity period of five years with the facility for premature withdrawal. The SCSS interest is paid quarterly on March 31, June 30, September 30, and December 31 of each fiscal year.
Senior Citizens Saving Scheme (SCSS): Eligibility
Citizens of India above the age of 60 can create a Senior Citizens Saving Scheme (SCSS) account at their local bank or post office.
An individual who is over the age of 55 but before the age of 60 and has retired on superannuation is entitled to register for the SCSS account.
SCSS account depositors can make an initial single deposit.
Cash deposits are allowed for amounts less than one lakh, but check deposits of one lakh or more are permissible, with the deposit date beginning with the cheque's realisation date.