Government can increase the income of senior citizens, SCSS interest rates will go above 8 percent

By investing Rs 30 lakh in SCSS accounts, senior citizens can earn up to Rs 20,000 per month in interest income, while senior citizens couples can earn Rs 40,000 by depositing Rs 30 lakh in their SCSS accounts.

Senior Citizens Savings Scheme Interest Rate: On the last day of the month, the government will announce a change in the interest rates of the Small Savings Scheme for the first quarter of the new financial year. In which the government can once again announce to provide relief to senior citizens. This means that for the second consecutive quarter, the government can increase the interest rates of Senior Citizens Savings Scheme.

This time this increase can be of 50 to 75 basis points. After which the interest rates of Senior Citizens Savings Scheme will be more than 8 percent. In December, the interest rate in SCSS was changed for the last quarter of the financial year 2022-23. In which 40 basis points were increased and the interest rates were increased to 8 percent.

Why can there be an increase?

If experts are to be believed, the government may increase the interest rates of Small Savings Scheme due to the rise in G-Sec yield. In the last few quarters, there has been an increase in the policy rate. While the interest rates offered on Senior Citizens Savings Scheme (SCSS) are also increasing at a slow pace. According to experts, it is necessary to increase the SCSS rates to protect the financial interests of senior citizens in the midst of rising inflation. Looking at the current economic environment, the need for further expansion in this scheme is being felt.

The government had announced in the budget

Meanwhile, it is expected that the government will soon notify the new investment limit for the SCSS scheme announced in Budget 2023, although a formal notification is yet to be made on this announcement. Finance Minister Nirmala Sitharaman had said in her budget that senior citizens would be allowed to deposit up to Rs 30 lakh in their SCSS accounts.

According to experts, by investing Rs 30 lakh in their SCSS accounts, senior citizens can earn up to Rs 20,000 per month in interest income, while senior citizens couples can earn Rs 40,000 by depositing Rs 30 lakh in their SCSS accounts. . After the maturity period of the SCSS account, 8 percent interest is received. The account holder can extend his scheme for three years.