Senior Citizen Savings Scheme (SCSS) Interest Rate July-September 2023: Will it increase above 8.2%?

financialexpress.com:

Senior Citizen Savings Scheme (SCSS) Interest Rate July-September 2023: The SCSS interest rate for the July-September quarter of FY 2023-24 will be announced today (June 30). SCSS account holders are expecting a further hike in the interest rate. However, a fresh hike is unlikely as the SCSS interest rate has increased in the last two quarters. (See SCSS interest rate history).

In the April-June quarter of FY 2023-24, the SCSS interest rate was 8.2%. The account allows senior citizens to deposit up to Rs 30 lakh and receive quarterly interest income. They can also claim tax deductions under Section 80C of the Income Tax Act (subject to the limit of Rs 1.5 lakh per year). The interest earned from SCSS deposits is, however, taxable.

In the last two quarters, the Government has increased interest rates for Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY) account, Kisan Vikas Patra (KVP), and Post Office deposit schemes like Post Office Time Deposit, Post Office Monthly Income Scheme (POMIS) and Post Office Recurring Deposit (RD). Only Public Provident Fund (PPF) interest rate has remained unchanged.

As the Reserve Bank of India (RBI) has paused the hike in the repo rate, which increased by 2.5% since May 2022, there is a very small possibility of a further hike in the SCSS interest rate today.

As the Reserve Bank of India (RBI) has paused the hike in the repo rate, which increased by 2.5% since May 2022, there is a very small possibility of a further hike in the SCSS interest rate today.

The interest rates of small savings schemes, including SCSS, are linked to yields of Government Securities (G-Secs). The Finance Ministry reviews the interest rates of small savings