Finance Minister Nirmala Sitharaman gave a major relief to senior citizens who rely on interest income for sustenance. Two key Budget 2023 proposals made by the Finance Minister in that regard include enhancing the maximum deposit limits for Senior Citizen Savings Scheme and Post Office Monthly Income Account Scheme.
FM Sitharaman proposed raising the maximum deposit limit for Senior Citizen Savings Scheme from Rs 15 lakh to Rs 30 lakh, and the maximum deposit limit for Monthly Income Account Scheme to be enhanced from Rs 4.5 lakh to Rs 9 lakh for single account and from Rs 9 lakh to Rs 15 lakh for joint account.
The Senior Citizen Savings Scheme (SCSS) is a fixed-income investment option for people above the age of 60 years. The scheme offers a higher interest rate than regular savings schemes, providing a regular source of income for the elderly population.
For the March quarter, the interest rate offered under SCSS is 8%. The Finance Minister on February 1, 2023 announced that the maximum deposit limit for the SCSS has been increased from Rs 15 lakh to Rs 30 lakh. This change will allow senior citizens to deposit more money into their SCSS account and receive a higher interest rate on their savings.
The Post Office Monthly Income Scheme (POMIS) or simply Monthly Income Account Scheme is a government-backed small savings scheme. The Monthly Income Scheme (MIS) savings scheme offered by the Indian Post Office provides an attractive rate of interest and a fixed monthly income to its depositors.
The Monthly Income Scheme (MIS) is a savings scheme offered by the Department of Post (DoP) also known as India post which provides an attractive rate of interest and a fixed monthly income to its depositors. The recent hike in the deposit limit for MIS has increased the maximum investment limit from Rs 4.5 Lakhs to INR 9 Lakhs per individual, allowing individuals to potentially earn a higher income from their investments. The scheme has a minimum lock-in period of 5 years/ On February 1, 2023, the Finance Minister proposed to hike the maximum deposit limit in the Post Office MIS scheme from Rs 4.5 lakh to Rs 9 lakh for individual depositors and from Rs 9 lakh to Rs 15 lakh for joint accounts.
