Union Budget promises: Govt says it hiked deposit limit of Senior Citizens' Savings Scheme as declared
In the Budget for 2023-24, Finance Minister Nirmala Sitharaman proposed raising the upper deposit limit for the Senior Citizen Saving Scheme (SCSS) from Rs 15 lakh to Rs 30 lakh.
- Jan 30, 2024,
- Updated Jan 30, 2024 3:04 PM IST
Budget expectations: The Union Budget 2023-24 was the last full-fledged Budget statement for the NDA government 2 before the upcoming 2024 Lok Sabha elections scheduled this year. Though this year it will be a 'Vote on Account' and no major declarations are expected, in the past the NDA government has provided taxpayers some relief or the other. Just like salaried individuals, senior citizens have been provided with adequate relief.
In the Budget for 2023-24, Finance Minister Nirmala Sitharaman proposed raising the upper deposit limit for the Senior Citizen Saving Scheme (SCSS) from Rs 15 lakh to Rs 30 lakh. Similarly, the maximum deposit limit for the Monthly Income Plan was raised from Rs 4.5 lakh to Rs 9 lakh, and for joint accounts, it increased from Rs 9 lakh to Rs 15 lakh.
“The senior citizens saving scheme will be extended for a deposit account of ₹30 lakh from ₹15 lakh," FM Sitharaman announced while presenting the Union Budget in the parliament.
Taking to X, formerly known as Twitter, the Ministry of Finance stated that in order to ensure more financial security for senior citizens, the Government has increased the deposit limit of the Senior Citizens' Savings Scheme (SCSS).
The Senior Citizens' Saving Scheme (SCSS) is a retirement benefits programme supported by the government and was launched in 2004. All Indian residents who are senior citizens can make a lump sum investment in the scheme, either individually or jointly, and enjoy regular income as well as tax benefits. This scheme is offered through Post Offices, and senior citizens can open an SCSS account to take advantage of its benefits.
Earlier, in this government-backed small saving scheme, the deposit limit was Rs 15 lakh and the interest rate given on this risk-free small saving scheme was 7.40 per cent per annum. The SCSS interest rate of 7.40 per cent per annum was comparatively higher than the normal returns being given by bank fixed deposits or FDs.
The SCSS interest is payable on a quarterly basis, which means on 31st March, 30th June, 30th September, and 31st December of every financial year. However, the Senior Citizens Saving Scheme has a lock-in period of five years. But, in case of financial requirements, premature withdrawal is allowed.
The minimum deposit for the scheme is Rs 1,000, while the deposit quantum has been revised to Rs 30 lakh in this Budget, which was Rs 15 lakh before.
The maturity tenure for the scheme is 5 years. It can be extended for another 3 years. If the investor wants to close the account and withdraw the amount prematurely, then he can do that after one year of account opening.
Also read: Budget Expectations: Will Standard Deduction see a revision in Interim Budget?
Also read: Interim Budget 2024: What major announcements were made in Interim Budget 2019; check details
Budget expectations: The Union Budget 2023-24 was the last full-fledged Budget statement for the NDA government 2 before the upcoming 2024 Lok Sabha elections scheduled this year. Though this year it will be a 'Vote on Account' and no major declarations are expected, in the past the NDA government has provided taxpayers some relief or the other. Just like salaried individuals, senior citizens have been provided with adequate relief.
In the Budget for 2023-24, Finance Minister Nirmala Sitharaman proposed raising the upper deposit limit for the Senior Citizen Saving Scheme (SCSS) from Rs 15 lakh to Rs 30 lakh. Similarly, the maximum deposit limit for the Monthly Income Plan was raised from Rs 4.5 lakh to Rs 9 lakh, and for joint accounts, it increased from Rs 9 lakh to Rs 15 lakh.
“The senior citizens saving scheme will be extended for a deposit account of ₹30 lakh from ₹15 lakh," FM Sitharaman announced while presenting the Union Budget in the parliament.
Taking to X, formerly known as Twitter, the Ministry of Finance stated that in order to ensure more financial security for senior citizens, the Government has increased the deposit limit of the Senior Citizens' Savings Scheme (SCSS).
The Senior Citizens' Saving Scheme (SCSS) is a retirement benefits programme supported by the government and was launched in 2004. All Indian residents who are senior citizens can make a lump sum investment in the scheme, either individually or jointly, and enjoy regular income as well as tax benefits. This scheme is offered through Post Offices, and senior citizens can open an SCSS account to take advantage of its benefits.
Earlier, in this government-backed small saving scheme, the deposit limit was Rs 15 lakh and the interest rate given on this risk-free small saving scheme was 7.40 per cent per annum. The SCSS interest rate of 7.40 per cent per annum was comparatively higher than the normal returns being given by bank fixed deposits or FDs.
The SCSS interest is payable on a quarterly basis, which means on 31st March, 30th June, 30th September, and 31st December of every financial year. However, the Senior Citizens Saving Scheme has a lock-in period of five years. But, in case of financial requirements, premature withdrawal is allowed.
The minimum deposit for the scheme is Rs 1,000, while the deposit quantum has been revised to Rs 30 lakh in this Budget, which was Rs 15 lakh before.
The maturity tenure for the scheme is 5 years. It can be extended for another 3 years. If the investor wants to close the account and withdraw the amount prematurely, then he can do that after one year of account opening.
Also read: Budget Expectations: Will Standard Deduction see a revision in Interim Budget?
Also read: Interim Budget 2024: What major announcements were made in Interim Budget 2019; check details