The maximum investment limit for the Senior Citizen Savings Scheme (SCSS) has been increased from Rs 15 lakh to Rs 30 lakh in Budget 2023. Finance Minister Nirmala Sitharaman made this announcement while reading the budget speech on Wednesday.
Also read: Post Office Monthly Income Scheme’s limit enhanced to Rs 9 lakh for individuals in Union Budget 2023
What is Senior Citizen Savings Scheme?
For the quarter ending March 31, 2023, the government has raised interest rate on the Senior Citizen Savings Scheme (SCSS) to 8%.
Also read: Post Office Schemes latest Interest Rates in India for 2023
According to the SBI website, these are the main features of SCSS:
- The depositor may extend the account for a further period of three years after the maturity period of five years.
- The deposit made under these rules shall bear interest as directed by the government from time to time quarterly.
- If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.
- The whole amount of deposit in a joint account shall be attributable to the first account holder only.
- Both the spouses can open single account and joint accounts with each other.
- The depositor may nominate a person or more than one person.
- Nomination made by the depositor can be cancelled or varied.
- The deposit made at the time of opening of the account shall be paid on or after the expiry of five years or after the expiry of eight years where the account was extended from the date of the opening of the account.
- Multiple withdrawals from an account shall not be permitted.
Also read: Tax-saving: 5 post office schemes with section 80C benefits