The Government of India revised the interest rates for the Small Savings Schemes. The senior citizen savings scheme (SCSS) for the Q1 FY 2023-24 now provide 8.2% p.a. interest up from 8.0% p.a. during the previous quarter. The rates shall stay in force from 01-Apr-23 to 30-Jun-23. The Government review the interest rates every quarter.
The 8.2% interest rate is the highest among all the small savings schemes including the Public Provident Fund (PPF). Read SCSS vs PPF to check which results in higher earnings SCSS or PPF.
| Applicable for Period | Senior Citizen Savings Scheme (SCSS) Interest Rates |
| Q1 – FY 2023-24 | 8.2% |
| Q4 – FY 2022-23 | 8.0% |
| Q3 – FY 2022-23 | 7.6% |
Save Income tax with your Senior Citizen Savings Scheme investment
SCSS Investments are applicable for deduction under section 80C of the Income-tax Act, 1961. If you have opted for the old regime of income tax, claim the 80C deduction at the time of filing your return.
However, the interest earned from the SCSS is not exempt. Therefore, be sure to add interest earned as part of your taxable income every year, otherwise, total interest earned from the SCSS shall be taxable and included in total taxable income at the time of maturity.
The investments are subject to a lock-in period of five years.
Maximum Deposits under SCSS
On March 31, 2023, the Government increased the limit of investment in senior citizen savings schemes (SCSS) to INR 30 Lakhs from the earlier limit of INR 15 Lakhs.