SCSS Return Calculation 2023: The Finance Ministry recently raised Senior Citizen Savings Scheme (SCSS) interest rate to 8%. The new rate would be applicable for the January-March quarter of FY 2022-23. A senior citizen account holder can deposit up to Rs 30 lakh in an SCSS account for a period of 5 years, as per the announcement made by Finance Minister Nirmala Sitharaman in Union Budget 2023-24. There is also a provision to increase the tenure for another three years. (Check calculation: How much income Rs 30 lakh in SCSS will give)
Interest earned from the SCSS account is paid on a quarterly basis. Therefore, senior citizens can use this scheme as a source of regular income. Assuming an 8% interest rate, the following are the expected quarterly returns senior citizens can expect by depositing Rs 5 lakh, Rs 10 lakh or Rs 15 lakh respectively in the SCSS account.
Also Read: Modi Govt’s Gift for Senior Citizens, Retired Employees and Pensioners
SCSS Quarterly Income from Rs 5 lakh deposit for 5 years
| Principal Amount | Rs 5,00,000 |
| No. of years | 5 |
| Interest rate | 8% |
| Quarterly interest | Rs 10,000 |
| Annual Interest | Rs 40,000 |
| Total Interest in 5 years | Rs 2,00,000 |
SCSS Quarterly Income from Rs 10 lakh deposit for 5 years
| Principal Amount | Rs 10,00,000 |
| No. of years | 5 |
| Interest rate | 8% |
| Quarterly interest | Rs 20,000 |
| Annual Interest | Rs 80,000 |
| Total Interest in 5 years | Rs 4,00,000 |
SCSS Quarterly Income from Rs 15 lakh deposit for 5 years
| Principal Amount | Rs 15,00,000 |
| No. of years | 5 |
| Interest rate | 8% |
| Quarterly interest | Rs 30,000 |
| Annual Interest | Rs 1,20,000 |
| Total Interest in 5 years | Rs 6,00,000 |
Apart from a high-interest rate, an SCSS account offers several other benefits (check here).
Along with the SCSS interest rate, the Government has also raised the interest rate of Post Office Time Deposits of different tenors. 5-year Post Office FD is now offering 7% interest while 3-year FD offers 6.9% interest. The interest rates of Kisan Vikas Patra (KVP) and National Savings Certificate (NSC) have been increased to 7.2% and 7% respectively.