Senior Citizens Savings Scheme soars: ₹74,625 crore in deposits

In the ongoing fiscal year 2023-24, deposits under the Senior Citizens Savings Scheme have soared, reaching a staggering ₹74,625 crore between April and September. This impressive figure represents a remarkable 160% increase compared to the ₹28,715 crore deposited in the same period during the previous fiscal year, as confirmed by a government official to Business Today

This surge in collections can be attributed to the significant reforms introduced in the Union Budget. Finance Minister Nirmala Sitharaman raised the maximum deposit limits for the SCSS from ₹15 lakh to ₹30 lakh.

Simultaneously, the Monthly Income Account Scheme limits were enhanced, going from ₹4.5 lakh to ₹9 lakh for single accounts and from ₹9 lakh to ₹15 lakh for joint accounts. An official emphasized that the higher interest rates and increased deposit limits were key factors contributing to this remarkable uptick.

Additionally, the government has set a budget of ₹4.71 lakh crore for small savings collections in the fiscal year 2023-24. Furthermore, Sitharaman introduced a new savings scheme named the Mahila Samman Savings Certificate (MSSC), available until March 2025.

The MSSC allows deposits up to ₹2 lakh in the name of women or girls, offering a fixed interest rate of 7.5% and permitting partial withdrawals. By September 30, deposits in the MSSC had reached ₹13,512 crore, indicating substantial interest among investors.

Under the SCSS, investors can enjoy an attractive interest rate of 8.2% for a five-year deposit tenure. Similarly, the MSSC offers an annual return of 7.5% for a deposit period of two years. These initiatives have not only encouraged savings but have also provided secure avenues for senior citizens and women investors, fostering financial stability and growth in the country.

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