Senior Citizen's Saving & Monthly Income Scheme Limit Increased

Senior Citizen's Saving & Monthly Income Scheme Limit Increased The maximum deposit limit for Senior Citizen Savings Scheme increased from 15 lacs to

Senior Citizen's Saving & Monthly Income Scheme Limit Increased

Senior Citizens Savings Scheme

Some Highlights of the Scheme:

1. Eligibility: An individual who is 60 years or above on the date of opening of an account or an individual who is 55 years or more but less than 60 years old and has retired under Superannuation, VRS or Special VRS, can open an account.
   Retired personnel of Defence Services (excluding Civilian Defence Employees) may open an account upon attaining the age of fifty years subject to the fulfilment of other specified conditions.
2. No. of Account: A depositor may open an account individually or jointly with a spouse.
3. Minimum/Maximum Deposit Limit: Minimum deposit Rs. 1000/- & in the multiples thereof with a maximum deposit of Rs 30 lacs. (Amended from Budget 2023 previously Rs 15 Lacs)
4. Interest Payment: Interest shall be payable from the date of deposit to 31st March/ 30th June/30th September/31st December on the 1st working day of April/July/October/January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/July/October/January.
5. Premature closure/extension of Period: The account can be closed after the expiry of 5 years from the date of opening of the account. The depositor may extend the account for a further period of 3 years. Premature closure is permissible subject to certain conditions.
6. Tax Benefit: Deposits in SCSS qualify for deduction u/s 80C of the Income Tax Act.

Amendment in Budget 2023 in Senior Citizens Savings Scheme
The maximum deposit limit for Senior Citizen Savings Scheme increased from 15 lacs to Rs 30 lacs. Due to this senior citizens can save more in saving schemes.

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National Savings (Monthly Income Account) Scheme

1. Account opening & No. of Accounts: A depositor may operate more than one account under this scheme subject to the ceiling of the maximum amount, which may be invested in a single, or a joint account. A guardian may also open an account on behalf of a minor or a person of an unsound mind.
2. Maturity: The account matures in 5 years.
3. Minimum/Maximum Deposit: Minimum Rs. 1000/- & in the multiples thereof. Maximum Rs 9 Lacs in a single account and Rs 15 lacs in Joint Account. (Amended in Budget 2023 previously was Rs 4.5 and 9 Lacs respectively)
4. Premature closure/extension of Period: The account can be closed prematurely after one year but before the expiry of three years on a deduction of 2% of the deposit. In case the account is closed after the expiry of three years, 1% of the deposit shall be deducted.

National Savings Monthly Income Account scheme Rules Can be Read Here
Amendment in Budget 2023 in Monthly Savings Scheme
The Monthly Income Account Scheme Deposit limit is increased from Rs. 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account.