Senior Citizens Saving Scheme: Interest charge, different modifications from April 1, 20232 min read
Senior Citizens Saving Scheme (SCSS): The Government of India (GoI) has introduced small financial savings scheme rate of interest efficient from 1st April 2023. In this small financial savings rate of interest from April 2023, the central authorities has raised Senior Citizens Saving Scheme rate of interest to eight.20 per cent from SCSS rate of interest of 8 per cent for January to March 2023 quarter. So, SCSS rate of interest might be an enormous change efficient from immediately.
Apart from Senior Citizens Saving Scheme rate of interest change, most deposit restrict has been doubled from 1st April 2023 i.e. from immediately. The Finance Minister Nirmala Sitharaman had made the announcement on this regard throughout her Union Budget speech on 1st February 2023. The finances proposal has grow to be a actuality from 1st April 2023 i.e. from immediately after the passage of Finance Bill 2023 in parliament.
Nirmala Sitharaman introduced to double the utmost deposit restrict 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 financial savings scheme’s rate of interest introduced on Friday is way larger than PPF rate of interest of seven.10 per cent and a median financial institution mounted deposit (FD0 rate of interest, which is round 7 per cent today. So, a senior citizen who’s in search of an funding possibility with tax saving bonanza, they will go for the SCSS because it has maturity of 5 years. But, pre-matured withdrawal in SCSS is allowed.
The SCSS curiosity is payable on quarterly foundation this implies on thirty first March, thirtieth June, thirtieth September and thirty first December of each monetary 12 months.
SCSS account opening eligibility
An individual who has attained 60 years of age is eligible to open a Senior Citizens Saving Scheme or SCSS account in nearest financial institution or publish workplace. But, a person who’s above 55 years of age however under 60 years and has retired on superannuation is eligible for opening SCSS account.
A SCSS account depositor can put money into an upfront single deposit. Cash deposit is allowed on quantity under ₹1 lakh whereas ₹1 lakh or above quantity is accepted by way of cheque and deposit date is taken into account from the cheque realisation date.
Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.