Small savings schemes are likely to get a major lift from April 1 as the government has made some changes to the existing plans and introduced a fresh one. While the maximum deposit limit for Senior Citizen Savings Scheme (SCSS) has been hiked to Rs 30 lakh, the maximum deposit limit for Monthly Income Scheme (MIS) has been enhanced from Rs 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account.
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The government is also launching a one-time new small savings scheme — the Mahila Samman Bachat Patra — from April 1.
Here's a look at the changes in small savings schemes from April 1:
Senior Citizen Savings Scheme (SCSS)
From April 1, investors will be able to invest up to Rs 30 lakh in the Senior Citizen Saving Scheme (SCSS). This limit was raised in Budget, from Rs 15 lakh. With this, senior citizens will be able to deposit more money into their SCSS account and receive a higher interest rate on their savings.
An investor can park money in SCSS after attaining the age of 60 years. Also, those who have opted for the Voluntary Retirement Scheme (VRS) are eligible to invest in the scheme from age 55 years. SCSS offers tax benefits under Section 80C of the Income-Tax (I-T) Act.
The scheme offers a regular source of income for senior citizens.
Monthly Income Scheme (MIS)
The deposit limit for MIS will be hiked from Rs 4.5 lakh to Rs 9 lakh per individual from April 1, allowing individuals to potentially earn a higher income from their investments. For joint account holders, the limit has been raised to Rs 15 lakh.
MIS is a savings scheme offered by the Department of Post (DoP) with a fixed monthly income to its depositors. While the account is active, investors can receive a monthly sum in the form of interest.
Mahila Samman Savings Certificate
The Budget 2023 introduced this scheme for women investors to commemorate 'Azadi ka Amrit Mahotsav.' This scheme is a one-time small savings scheme that will be made available for a period of two years, up to March 2025. Under this plan, women and girls can invest up to Rs 2 lakh for a tenure of two years with an interest rate of 7.5 percent per annum with the facility of partial withdrawal.
While post offices are ready to launch it from April 1, banks may take some time to roll out the scheme.
According to experts, this scheme will help women investors start investing for their short-term financial goals and needs.
Compared to other small savings schemes like Sukanya Samriddhi Yojna, which has a maximum investment limit of Rs 1.5 lakh in a financial year, and also has a long lock-in period of 21 years, the Mahila Samman Savings Certificate provides an opportunity to invest up to Rs 2 lakh for a tenure of two years.
