Tag: Senior Citizen saving scheme interest rate

  • SCSS vs Senior Citizen Fixed Deposit: Which is best for aged folks?

    Senior residents want to preserve their cash safe, and like financial institution fastened deposits (FDs) and small financial savings schemes. These are thought-about low-risk devices. If we discuss senior residents’ FDs, aged folks get a further charge of curiosity that may go as much as 0.50% greater than most people. The authorities hiked rates of interest on the senior citizen financial savings scheme (SCSS) in April 2023. At current it’s providing an 8.2 per cent charge.

    SCSS vs Senior Citizen Fixed Deposit: Which scheme scores higher?

    Senior residents ought to give precedence to Senior Citizen Savings Schemes over Fixed deposits, stated Viplav Majumdar, Certified Financial Planner, Director, Planyourworld.com

    “SCSS has a better curiosity of 8%, and this funding is roofed below tax saving funding u/s 80C. Whereas a senior citizen fastened deposit provides you a 7.5% return with out tax saving profit if the tenure is lower than 5 years,” said Viplav Majumdar. 

    Choosing between SCSS and Senior Citizen Fixed Deposit is like navigating the financial tides of retirement. “SCSS sets sail with higher interest rates, but its limited investment cap leaves seniors longing for more. Meanwhile, the FD banks offer a vast ocean of possibilities, supporting larger investments, and flexible tenures. The current may favor liquidity in FDs, but SCSS gracefully glides with quarterly interest payments. So, sail wisely, seniors, for your financial horizon awaits your prudent choice,” Amit Gupta, MD, SAG Infotech stated. 

    Whether it’s SCSS or Senior Citizen Fixed Deposit, returns from each investments are taxable within the fingers of traders.

    “In each investments the true return after the deduction of Income Tax and adjusting inflation, the returns are unfavourable. Moreover, the curiosity is fixed for all of the years, however your bills develop always,” stated  Certified Financial Planner Viplav Majumdar.

    Lastly, the senior residents will really feel that their revenue from these devices is unable to match rising bills in years simply two to 3 years. So, they should plan their revenue sources by concentrating on optimistic revenue after adjusting revenue tax and inflation, he added.

    The authorities made a number of adjustments to the Senior Citizens Savings Scheme (SCSS) in Budget 2023. Among these adjustments, the utmost funding restrict was raised from ₹15 lakh to ₹30 lakh.

    Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise traders to verify with licensed specialists earlier than taking any funding selections.

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    Updated: 26 Jul 2023, 03:05 PM IST

  • PPF, NSC, Post Office Scheme rates of interest introduced. Full listing right here

    Ahead of ushering into new monetary yr, the Government of India (GoI) on yesterday introduced to maintain small saving schemes rate of interest unchanged for Q1FY23. These small saving schemes rate of interest consists of Public Provident Fund or PPF rate of interest, National Savings Certificate or NSC rate of interest and submit workplace small saving scheme rates of interest.

    The Ministry of Finance introduced concerning the GoI’s choice by a notification dated thirty first March 2022 citing, “The rate of interest on various small savings schemes for the first quarter of the financial year 2022-23, starting from April 1, 2022, and ending on June 30, 2022, shall remain unchanged from the current rates applicable for the fourth quarter (January 1, 2022, to March 31, 2022) for FY 2021-22.”

    So, PPF rate of interest will proceed to yield 7.10 per cent in April to June 2022 quarter whereas NSC rate of interest would proceed at 6.80 per cent each year. Those who’ve Sukanya Samriddhi Yojana or SSY accounts would proceed to get 7.60 per cent SSY rate of interest on their deposits in first quarter of the brand new monetary yr.

    Similarly, submit workplace small saving investor will proceed to get return on their cash they have within the not too long ago ended quarter.

    After the issuance of contemporary notification by the Ministry of Finance, one yr submit workplace time period deposit will proceed to ship 5.50 per cent return on an investor’s deposits in April to June 2022 quarter. Post workplace time period deposits for one to 5 years would proceed to ship 5.50 per cent to six.70 per cent each year. Interest price on 5 yr Post Office RD will stay at 5.80 per cent each year.

    The rate of interest on 5-year senior citizen saving scheme would additionally proceed to ship 7.40 per cent for the primary quarter of recent fiscal. However, financial savings rate of interest would proceed at 4 per cent each year.

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