Union Finance Minister Nirmala Sitharaman has made investing opportunities more convenient and profitable for senior citizens. Sitharaman increased the investment limit in two of the most well-known schemes among senior citizens, the Post Office Monthly Income Scheme (POMIS) and the Senior Citizen Saving Scheme (SCSS), in the recent Union Budget 2023-24.
The finance minister has launched the Mahila Samman Saving Certificate (MSSC), which is specifically aimed at women. Senior citizens can also invest risk-free in the Pradhan Mantri Vaya Vandana Yojana. Now, let’s understand these schemes by the government.
Post Office Monthly Income Scheme (POMIS):
Individual account limits have been raised from Rs 4.5 lakh to Rs 9 lakh, while joint account limits have been raised from Rs 9 lakh to Rs 15 lakh. With a 7.1% interest rate, the prior income for a Rs 4.5 lakh deposit, which was Rs 2,662 per month or Rs 31,950 annually, would now be Rs 5,325 per month or Rs 63,900 annually. This revenue would be Rs 10,650 per month or Rs 1,27,800 per year for a joint account.
Senior Citizen Saving Scheme (SCSS)
The SCSS now has a five-year lock-in term and offers an 8% annual risk-free return with quarterly interest payments. In an emergency, the strategy allows for early withdrawal. SCSS accounts can be opened at a bank, post office, or online through a variety of banks. Although the program is meant for seniors over the age of 60, those over the age of 55 who have retired from the workforce are also eligible to open an account.
Mahila Samman Saving Certificate (MSSC)
This allows deposits of up to Rs 2 lakh in the names of women or girls, with the option of partial withdrawal. The term is two years, and the interest rate is fixed at 7.5%. According to the Finance Minister's Budget, this initiative would provide deposit opportunities for women and girls. Saving certificates will also be made available for a one-time period of up to two years, or until March 2025, to commemorate Azadi Ka Amrit Mahotsav.
