Senior Citizen Savings Scheme (SCSS) Interest Income Calculation: Earn up to Rs 61,000 every quarter

Senior Citizen Savings Scheme (SCSS) Interest Income Calculation April-June 2023: Senior citizens can now earn more by investing in an SCSS account as the interest rate for the April-June quarter has become better than fixed deposits offered by banks. Calculation shows that by investing Rs 30 lakh in SCSS, accountholders can now earn a risk-free and guaranteed interest of 8.2%.

Further, at the current 8.2% interest offered on the SCSS account, senior citizens can earn a total interest income of Rs 12.3 lakh in 5 years by depositing Rs 30 lakh now. The quarterly interest payment for such an investment will be Rs 61,500.

By investing Rs 20 lakh, senior citizens can earn a total interest of Rs 8.2 lakh in five years and Rs 41,000 quarterly interest. Similarly, by depositing Rs 15 lakh, the accountholder can earn an interest income of Rs 6.15 lakh in 5 years and a quarterly receivable interest of Rs 30,750.

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The Government of India recently increased the SCSS account interest rate to 8.2%. With this, the SCSS interest rate has become better than several fixed deposit options, including tax-saving FD, offered by many banks.

For instance, the maximum interest a senior citizen can earn from SBI Fixed Deposit is only 7.6% while the SCSS scheme is offering 8.2% interest as of now. The rate will be valid till June 30 as the Government may further revise it for the second quarter of FY 2023-24.

Senior citizens can open SCSS accounts in the post office and also in several banks like SBI and HDFC Bank. The deposits made in an SCSS account qualify for deduction under Section 80C of the Income Tax Act, subject to the limit of Rs 1.5 lakh/year.

Also Read: Which bank has highest Fixed Deposit interest rate in April for senior citizens and others? Full list

Any individual aged above 60 years can open an SCSS account. Also, they can open any number of SCSS accounts but the combined deposits in all these accounts should not be more than Rs 30 lakh. Retired civilian employers above 55 years and below 60 years as well as retired Defense employees above 50 years and below 60 years of age are also allowed to open SCSS accounts.