Senior Citizens Saving Scheme (SCSS): The Government of India (GoI) has announced small savings scheme interest rate effective from 1st April 2023. In this small savings interest rate from April 2023, the central government has raised Senior Citizens Saving Scheme interest rate to 8.20 per cent from SCSS interest rate of 8 per cent for January to March 2023 quarter. So, SCSS interest rate will be a big change effective from today.
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Apart from Senior Citizens Saving Scheme interest rate change, maximum deposit limit has been doubled from 1st April 2023 i.e. from today. The Finance Minister Nirmala Sitharaman had made the announcement in this regard during her Union Budget speech on 1st February 2023. The budget proposal has become a reality from 1st April 2023 i.e. from today after the passage of Finance Bill 2023 in parliament.
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Nirmala Sitharaman announced to double the maximum deposit limit in Senior Citizens Saving Scheme citing, “The senior citizens saving scheme will be extended for a deposit account of ₹30 lakh from ₹15 lakh.”
The small savings scheme’s interest rate announced on Friday is much higher than PPF interest rate of 7.10 per cent and an average bank fixed deposit (FD0 interest rate, which is around 7 per cent these days. So, a senior citizen who is looking for an investment option with tax saving bonanza, they can go for the SCSS as it has maturity of five years. But, pre-matured withdrawal in SCSS is allowed.
The SCSS interest is payable on quarterly basis this means on 31st March, 30th June, 30th September and 31st December of every financial year.
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SCSS account opening eligibility
A person who has attained 60 years of age is eligible to open a Senior Citizens Saving Scheme or SCSS account in nearest bank or post office. But, an individual who is above 55 years of age but below 60 years and has retired on superannuation is eligible for opening SCSS account.
A SCSS account depositor can invest in an upfront single deposit. Cash deposit is allowed on amount below ₹1 lakh whereas ₹1 lakh or above amount is accepted through cheque and deposit date is considered from the cheque realisation date.
