The Senior Citizens’ Saving Scheme’s (SCSS) maximum deposit amount has increased from Rs. 15 lakh to Rs. 30 lakh.
There were speculations that the Centre might change the interest rate for the Senior Citizen Savings Scheme (SCSS) by the end of this month. However, according to recent reports, senior citizens will have to wait a little longer because another revision is not anticipated any time soon. Senior residents currently benefit from the scheme by acquiring 8% interest on their deposits. The SCSS Deposit Limit has been increased to Rs. 30 crore in the Union Budget of 2023.
Read More: Invesco Mutual Fund launches two new target maturity index funds
For the fourth quarter of FY 2022–2023, the government raised the interest rate in December; the new rate will apply to deposits placed in the SCSS account in the first quarter of the year 2023. The Senior Citizen Savings Schemes (SCSS) interest rates are revised by the Center on a weekly basis for the uninitiated.
The Senior Citizens Savings Scheme has a five-year maturity period, but it is possible to request an additional three-year extension, bringing the overall investment period to eight years. However, bank FDs outperform SCSS because they provide deposits with terms varying from 7 to 10 years.
People can choose it based on their immediate objectives. Investors in the Senior Citizens Savings Scheme are permitted to take a portion of their funds in case of an emergency. All institutions permit you to prematurely withdraw your deposits; however, you will be penalized for doing so when taking funds from fixed deposits.
Read More: Senior Citizen Savings Scheme: Will govt hike SCSS interest rate above 8%
The SCSS income is due every financial year on the following dates: March 31, June 30, September 30, and December 31. Since the interest rate is compounded every quarter or year and due at maturity along with the principal, there is no fixed interest payable over a quarter, half-year, or yearly in a cumulative fixed deposit plan. The Senior Citizens Savings Scheme has a five-year term, hence the depositor is eligible for a Section 80C income tax exemption of up to 1.5 lakh rupees.
The SCSS interest rate is evaluated every quarter and could alter at any time. The senior citizen savings plan provides the highest rate of interest when compared to other savings plans on the market. The banks change the rate of interest for FDs; it is not evaluated every quarter. While presenting the Budget for 2023, Finance Minister Nirmala stated that the Senior Citizens Savings Scheme’s highest deposit limit would be increased. The Senior Citizens’ Saving Scheme’s (SCSS) maximum deposit amount has increased from Rs. 15 lakh to Rs. 30 lakh. The scheme’s minimal deposit amount is still set at 1,000.
