Senior Citizen Savings Scheme (SCSS) Interest Rate 2023: The current interest rate on SCSS deposits by senior citizens is 7.6%. If there is no change in this rate by December 31, then the same interest rate would be applicable on deposits made in an SCSS account in the first quarter of the new year 2023.
Amid rising inflation and repo rate hikes by the Reserve bank of India, senior citizens are expecting a change in SCSS interest rates. Even Fixed Deposit rates offered by some banks have gone up to 9%.
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SCSS Interest Rate 2023
The Government revises Senior Citizen Savings Schemes (SCSS) interest rate on a quarterly basis. The next revision of SCSS rates will take place by the end of this month. Therefore, the SCSS interest rate to be applicable in the first quarter of 2023 (January-March) will be known by December 31, 2022.
In past, SCSS deposits have earned over 9% returns.
Top 7 benefits of SCSS account
SCSS account provides several benefits to senior citizens. Following are the top seven benefits of opening an SCSS account for senior citizens.
Regular income: The interest earned from SCSS deposits is paid on a quarterly basis. In case the account holder doesn;t claim the quarterly interest, such interest amount doesn’t earn additional interest.
Higher returns: SCSS deposits generally have a high-interest rate than regular fixed deposit schemes offered by banks and post offices. The current rate of 7.6% is higher than many bank FDs.
No tax on interest up to Rs 50,000: Interest up to Rs 50,000 earned from SCSS deposits is tax-free. The interest becomes taxable only if the total interest in all SCSS accounts exceeds Rs 50,000. No TDS is deducted if the accountholder submits form 15G/15H and his accrued interest is not above the prescribed limit of Rs 50,000.
Tax Benefit: Senior citizens can claim a deduction of up to Rs 1.5 lakh under Section 80C, provided the same amount is deposited in the SCSS account.
Hassle-free, auto credit of interest: The interest earned from SCSS deposits can be withdrawn through auto credit in the linked savings account.
High deposit limit: Senior Citizens can deposit up to Rs 15 lakh in the SCSS account and earn quarterly interest. The account matures in 5 years.
