Senior Citizen Savings Scheme (SCSS) Interest Rate News September 15: The quarterly review of interest rates for SCSS and other small savings schemes by the Government is due to take place by the end of the current month
Senior Citizen Savings Scheme (SCSS) Interest Rate News September 15: The quarterly review of interest rates for SCSS and other small savings schemes by the Government is due to take place by the end of the current month. The revised SCSS interest rate for the October-December quarter of FY 2023-24 will be announced by September 30. Even as senior citizens are hoping for a further hike in SCSS interest rate, it is unlikely to happen this time, according to experts.
The Government kept the SCSS account interest rate for the July-September quarter unchanged at 8.2%. However, it was revised upwards in the previous two quarters. In April-June, the SCSS interest rate was increased from 8% to 8.2%. In the January-March quarter of FY 2022-23, it was increased to 8%.
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Going forward, experts think a further hike in the SCSS interest rate for the October-December quarter is unlikely.
According to Col. Rakesh Goyal (Retd), a Certified Financial Planner and Founder of Lets Invest Wisely, the status quo in interest rates of small savings schemes like SCSS is likely to be maintained in the current economic climate and also due to the fact that the interest rate cycle has not peaked yet. The Government may keep the SCSS interest unchanged at 8.2% for the upcoming quarter.
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At 8.2% interest rate, SCSS comes across as one of the best fixed-income options for senior citizens. This interest rate is also better than the fixed deposit interest rates offered by most of the top banks currently.
As the SCSS scheme is directly backed by the Government of India, the principal invested in this scheme and the interest earned are always guaranteed. Moreover, unlike, fixed deposit schemes, SCSS allows senior citizens to earn a quarterly interest income by making a maximum initial investment of Rs 30 lakh per person. The SCSS account matures in 5 years but it can be extended by another 3 years. Moreover, investment up to Rs 1.5 lakh per year in SCSS qualifies for deduction under Section 80C of the Income Tax Act.
