This information is beneficial for you if you also want to see bigger returns on your investment. Small savings plans and bank FDs are two low-risk investment possibilities. The Senior Citizens Savings Scheme’s interest rate is at an all-time high right now. By choosing this investing choice, you can benefit more. The interest rate for the Senior Citizen Savings Scheme has been set at 8.2 percent from July to September.
Increased from 15 lakh to 30 lakh the investment ceiling
Along with introducing the new tax structure, Finance Minister Nirmala Sitharaman made a significant statement in the 2018 budget for senior folks. As a result, the Senior Citizens Savings Scheme (SCSS) investment cap was raised from Rs 15 lakh to Rs 30 lakh. Seniors are now receiving a higher return on investment than they previously did because to this move. The interest rate was raised to 8.2 percent for the September quarter. In the preceding quarter, it was 8%. Prior to then, it had an interest rate of 7.6% and a Rs. 15 lakh investment cap.
Previously, senior citizens received a monthly benefit of 9,500
However, since the maximum investment amount has been increased and the interest rate has increased, their monthly income from interest has more than quadrupled. When the scheme first launched, an investment of Rs 15 lakh yielded Rs 20.70 lakh at a 7.6 percent return. This used to be 9500 rupees per month and 1.14 lakhs annually.
The benefit will now be worth Rs. 20500 to Senior Citizens
On the maturity of five years, a total of Rs 42.30 lakh will be collected with interest of Rs 12.30 lakh after the Finance Minister increased the investment limit to Rs 30 lakh and increased the interest rate to 8.2 percent. If the amount is computed annually, it is 2 lakh 46 thousand rupees and 20 500 rupees per month. That is, as a result of the Finance Minister’s declaration, seniors would now receive Rs 20,500 instead of Rs 9,500.
What’s the plan?
The government administers the “Senior Citizen Savings Scheme” for the benefit of senior persons throughout the nation. This program was started with the intention of helping retired people financially. Senior folks who participate in the program receive money each month in the form of interest.
Within the Tax Rebate
The government adjusts the interest rate for the Senior Citizen Savings Scheme on a quarterly basis, up to a maximum of Rs. 1.5 lakh. In this, the husband and wife might individually open a separate account or a joint account. The unique feature is that you can invest in it and receive a tax rebate of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Read more: ITR filing for fiscal years 2022–2023: Rules changed! It will be a loss if ITR is not filed by July 31
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