Union Finance Minister Nirmala Sitharaman has opened avenues for senior citizens for their investment schemes. In the recent Union Budget 2023-24, Sitharaman has increased the investment limit in two of the most invested schemes by the senior citizens — Post Office Monthly Income Scheme (POMIS) and Senior Citizen Saving Scheme (SCSS). The Finance Minister has initiated Mahila Samman Saving Certificate (MSSC), especially for women. Senior citizens can also invest in Pradhan Mantri Vaya Vandana Yojana for risk-free investing. Now, let’s understand these four schemes by the government.
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Post Office Monthly Income Scheme (POMIS): The limits for individual accounts have been enhanced from Rs 4.5 lakh to Rs 9 lakh, and from Rs 9 lakh to Rs 15 lakh for joint accounts. With an interest rate of 7.1%, the previous income for a deposit of Rs 4.5 lakh, which was Rs 2,662 per month or Rs 31,950 annually, would now increase to Rs 5,325 per month or Rs 63,900 annually. This income for a joint account would be Rs 10,650 a month, or Rs 1,27,800 annually.
Senior Citizen Saving Scheme (SCSS): The SCSS now has a five-year lock-in period and promises an annual risk-free return of 8% with interest paid quarterly. The plan does permit early withdrawal in an emergency. The SCSS account may be opened at a bank, post office or online through various banks. Even though the programme is intended for seniors over 60, those who are over 55 and have retired from the workforce are also eligible to register an account.
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Mahila Samman Saving Certificate (MSSC): This offers deposit possibilities up to Rs 2 lakh in the names of women or girls with the possibility of partial withdrawal. The tenor is two years, and the fixed interest rate is 7.5%. The Finance Minister stated in the Budget that this programme will offer deposit opportunities for women and girls. To honour Azadi Ka Amrit Mahotsav, savings certificates will also be made accessible for a one-time period of up to two years, or until March 2025.
