Earn Rs 12 lakh in 5 years as cap on Sr Citizens Savings Scheme deposit is doubled

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New Delhi: The Senior Citizens Savings Schemes (SCSS) may become more popular as the deposit limit has been doubled in the Union Budget presented by Finance Minister Nirmala Sitharaman on Wednesday.

With the doubling of the amount, Rs 60,000 can be earned as interest every three months if Rs 30 lakh is deposited for a period of five years. The total interest accruing over the five years will be Rs 12 lakh. From January, the interest rate under this scheme has been 8%. If Rs 15 lakh, which is the limit at present, is deposited, Rs 30,000 will be received as interest every three months.

The maximum amount that can be deposited in an individual account in the Monthly Income Scheme (MIS) that has been Rs 4.5 lakh until now has been raised to Rs 9 lakh. In joint accounts, Rs 15 lakh can be deposited in place of the earlier Rs 9 lakh. The interest rate effective till March is 7.1% for the scheme. If Rs 15 lakh is deposited for five years at this rate, Rs 8,875 will be received as interest every month. The circular on the new decisions will be issued soon.

Those who have crossed 60 years and those who have retired from service after 55 years of age, are eligible to join the SCSS scheme. The maturity period is five years. If the depositors desire, they can extend the maturity period by three years. The minimum deposit is Rs 1,000. For details visit: bitly/posavings.

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