Post Office Savings schemes: Three changes in post office from the April 1, 2023
The Union Budget 2023 made few changes in the two of the most popular post office schemes and even introduced a new scheme for female investors. If you are an individual who has invested in Senior Citizen Savings Scheme (SCSS) or Post Office Monthly Income Scheme (POMIS) or are planning to invest in same. Post Office schemes: Three changes in post office from the April 1, 2023.
Here is what the changes are
Senior Citizen Savings Scheme (SCSS)
In Budget 2023, the Senior Citizen Savings Scheme (SCSS) investment cap was raised from Rs 15 lakh to Rs 30 lakh.
The government-backed Senior Citizen Savings Scheme (SCSS) was established in 2004 with the goal of giving seniors a reliable and secure source of income for their post-retirement years. The interest rate offered on SCSS for this January- March quarter is 8%. SCSS interest rate is fixed for 5 years with a minimum deposit of Rs 1000 and multiple of 1000. Note that senior citizen saving scheme interest tax is not free.
Post Office Monthly Income Scheme
According to Budget 2023, the single account holder limit for the Post Office Monthly Income Scheme (POMIS) has been increased from Rs 4 lakh to Rs 9 lakh. The limit has increased for joint holding from Rs. 9 lakh to Rs. 15 lakh.
Monthly Income Scheme investors will get interest payments every month. The interest rate for this program is regularly established by the government. As of now the interest rate is 7.1% for the period of January to March 2023. An MIS account is valid for five years. If it is closed after 3 years but before 5 years from the date of opening, 1% of the principal will be levied.
Mahila Samman Savings Certificate
Mahila Samman Savings Certificate for female investors was announced in this union Budget 2023. This is a one-time, short-term savings plan that will be available for two years. But, the department has not yet made an official declaration or provided any details.
According to Sitharaman, “For commemorating Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate, will be made available for a two-year period up to March 2025. This will offer deposit facility up to Rs.2 lakh in the name of women or girls for a tenor of 2 years at fixed interest rate of 7.5 per cent with partial withdrawal option. “
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