How much this post office scheme will earn senior citizens in the year 2023, read here

Senior citizens get only 7.6 percent interest on the SCSS scheme.

SCSS Interest Rate 2023: Post Office Senior Citizen Savings for Senior Citizens till a few months back (Senior Citizen Saving Scheme) The scheme was the highest earning scheme. In which 7.6 percent interest is given to senior citizens (Senior Citizen Saving Scheme Interest Rate) was getting Although the interest rate is the same at present, but now the Senior Citizens FD has left it behind in terms of giving the highest returns.

In fact, between May and December, the RBI increased the repo rates. (RBI Repo Rate Hike) has increased by 2.25 per cent. Because of which banks have increased FD rates. Due to which many banks are providing interest of up to 9% per annum on FDs to senior citizens.

Now the question is whether the government will increase the SCSS interest rates for the next quarter on 31st December. Why due to the lower interest rate than bank FD, elderly investors can move from post office scheme to FD, where they are getting about one and a half percent more returns than SCSS. If the government does not change the interest rates, then till the March quarter, senior citizens will continue to get only 7.6 percent interest on this scheme. By the way, in the past, investors have been getting 9 percent annual return in this popular post office scheme.

Will SCSS interest rate increase for 2023?

The government changes the interest rate of Senior Citizen Savings Scheme (SCSS) on a quarterly basis. The next revision of SCSS rates will happen by the end of this month. Therefore, the interest rate of SCSS applicable in the first quarter (January-March) of the year 2023 will be known by 31 December 2022. The question is whether there will be a change in the interest rates of SCSS. If experts are to be believed, this time the government may consider increasing the interest rates of this scheme. There is a reason for that too. There has not been any change in the interest rates of this scheme for many months and due to the increase in the interest rates of many schemes like FD, the pressure on this scheme has increased a lot.

6 Benefits of SCSS Account

1. Regular Income: Interest earned on SCSS deposits is paid on a quarterly basis. If the account holder does not claim quarterly interest, such interest amount does not earn additional interest.
2. High Return : SCSS deposits generally carry a higher rate of interest than regular FDs offered by banks and post offices. The current rate of 7.6 per cent is higher than many bank FDs.
3. No tax on interest up to Rs 50,000: Interest up to Rs 50,000 earned from SCSS deposits is tax free. Interest is taxable only if the total interest earned in all SCSS accounts exceeds Rs.50,000. No TDS is deducted if the account holder submits Form 15G/15H and the interest earned does not exceed the prescribed limit of Rs 50,000.
4. Tax Benefit: Senior citizens can claim a deduction of up to Rs 1.5 lakh under Section 80C, provided an equal amount is deposited in the SCSS account.
5. Hassle free, auto credit of interest : Interest earned from SCSS deposits can be withdrawn through auto credit to the linked savings account.
6. High Deposit Limit : Senior citizens can deposit up to Rs 15 lakh in SCSS account and earn quarterly interest. The account matures in 5 years.