Collections under senior citizen savings scheme at Rs 74,625 crore since April 2023

Deposits in the Senior Citizens Savings Scheme (SCSS) during April-September in the current fiscal year (FY24) reached Rs 74,625 crore, marking a substantial 160 per cent increase compared to the Rs 28,715 crore deposited in the same period last fiscal year (FY23), confirmed a government official.

In the previous Union Budget, Finance Minister Nirmala Sitharaman had notably raised the maximum deposit limits for the Senior Citizens Savings Scheme (SCSS) from Rs 15 lakh to Rs 30 lakh.

Additionally, the limits for the Monthly Income Account Scheme were enhanced from Rs 4.5 lakh to Rs 9 lakh for single accounts and from Rs 9 lakh to Rs 15 lakh for joint accounts.

"It is because of the higher rate of interest, and also the increased maximum deposit limit," the official added.

The government has budgeted Rs 4.71 lakh crore of small savings collections for FY24.

The Finance Minister also introduced a new small savings scheme, known as the Mahila Samman Savings Certificate (MSSC), available for a two-year duration until March 2025.

Sitharaman elaborated that the MSSC allows for deposits of up to Rs 2 lakh in the name of women or girls, featuring a fixed interest rate of 7.5% and permitting partial withdrawals. According to an undisclosed official, deposits in the MSSC amounted to Rs 13,512 crore by September 30.

The SCSS offers an attractive interest rate of 8.2% for a five-year deposit tenure, while the MSSC provides an annual return of 7.5% for a deposit period of two years.

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