Senior Citizen Savings Scheme (SCSS) Interest Rate 2023: The current interest rate on SCSS deposits by senior citizens is 8%. The new rate was announced on December 30 and it would be applicable to deposits made in the SCSS account in the first quarter of the new year 2023. The SCSS Deposit Limit has been raised to Rs 30 lakh in Budget 2023. (Check calculation: How much income Rs 30 lakh in SCSS will give)
Also Read: Budget 2023 Income Tax Changes Live Updates
SCSS Interest Rate 2023
The SCSS interest rate applicable in the first quarter of 2023 (January-March) is 8%. The Government revises Senior Citizen Savings Schemes (SCSS) interest rate on a quarterly basis. The next revision of SCSS rate will take place by the end of March 2023.
In past, SCSS deposits have earned over 9% returns.
Also Read: SCSS interest rate is rising again – Will it reach 9.3% ATH?
Top 7 benefits of SCSS account
SCSS account provides several benefits to senior citizens. Following are the top seven benefits of opening an SCSS account for senior citizens.
Regular income: The interest earned from SCSS deposits is paid on a quarterly basis. In case the account holder doesn’t claim the quarterly interest, such interest amount doesn’t earn additional interest.
Higher returns: SCSS deposits generally have a high-interest rate than regular fixed deposit schemes offered by banks and post offices. The current rate of 8% is higher than many bank FDs.
No tax on interest up to Rs 50,000: Interest up to Rs 50,000 earned from SCSS deposits is tax-free. The interest becomes taxable only if the total interest in all SCSS accounts exceeds Rs 50,000. No TDS is deducted if the accountholder submits form 15G/15H and his accrued interest is not above the prescribed limit of Rs 50,000.
Also Read: Latest PPF interest rate
Tax Benefit: Senior citizens can claim a deduction of up to Rs 1.5 lakh under Section 80C, provided the same amount is deposited in the SCSS account.
Hassle-free, auto credit of interest: The interest earned from SCSS deposits can be withdrawn through auto credit in the linked savings account.
High deposit limit: Senior Citizens can deposit up to Rs 30 lakh in the SCSS account and earn quarterly interest. The account matures in 5 years.
(This article has been updated after Budget 2023 announcements)