Senior Citizen Savings Scheme (SCSS) Interest Rate 2023: The modern-day hobby charge on SCSS deposits by means of senior residents is 7.6%. If there may be no exchange in this rate by way of December 31, then the same interest charge could be relevant on deposits made in an SCSS account inside the first sector of the brand new 12 months 2023.
Amid growing inflation and repo price hikes by means of the Reserve financial institution of India, senior citizens are waiting for a alternate in SCSS hobby quotes. Even Fixed Deposit fees provided by some banks have gone up to 9%.
SCSS Interest Rate 2023
The Government revises Senior Citizen Savings Schemes (SCSS) hobby rate on a quarterly foundation. The next revision of SCSS charges will take area by means of the stop of this month. Therefore, the SCSS hobby price to be applicable within the first region of 2023 (January-March) could be recognized by using December 31, 2022.
In beyond, SCSS deposits have earned over nine% returns.
Top 7 blessings of SCSS account
SCSS account provides several benefits to senior citizens. Following are the pinnacle seven benefits of commencing an SCSS account for senior residents.
Regular earnings: The interest earned from SCSS deposits is paid on a quarterly basis. In case the account holder doesn;t declare the quarterly interest, such hobby amount doesn’t earn additional hobby.
Higher returns: SCSS deposits normally have a high-interest fee than normal constant deposit schemes provided by way of banks and publish offices. The current rate of seven.6% is higher than many bank FDs.
No tax on hobby as much as Rs 50,000: Interest as much as Rs 50,000 earned from SCSS deposits is tax-free. The interest becomes taxable only if the entire hobby in all SCSS bills exceeds Rs 50,000. No TDS is deducted if the accountholder submits form 15G/15H and his accrued interest isn’t above the prescribed limit of Rs 50,000.
Tax Benefit: Senior citizens can claim a deduction of up to Rs 1.Five lakh under Section 80C, provided the equal quantity is deposited within the SCSS account.
Hassle-unfastened, vehicle credit of interest: The hobby earned from SCSS deposits can be withdrawn via vehicle credit in the connected savings account.
High deposit limit: Senior Citizens can deposit as much as Rs 15 lakh in the SCSS account and earn quarterly hobby. The account matures in five years.