Uptick in saving deposit limit brings cheers to Sr. Citizens

Hyderabad: The announcement of Union Finance Minister Nirmala Sitharaman to increase the deposit level from Rs 15 lakh to Rs 30 lakh has bought cheers on senior citizens as this would help them in saving and earning big.

The senior citizens saving scheme (SCSS) would help the elderly to invest more in the risk free small savings schemes in the post office. Earlier, the post offices provided an interest rate of 7.40 per cent interest for the deposits and there was a maximum limit of Rs 15 lakh. This interest rate was higher than most of the nationalised banks. But now the Central government announced the enhancement of the maximum deposit level of Senior Citizens' Saving Scheme (SCSS) from Rs 15 lakh to Rs 30 lakh.

A retired bank employee Amitha Sharma said, "I am happy to learn that our FM Nirmala Sitharaman has quadrupled the SCSS maximum limit to Rs 30 lakh and has also increased the investment limit for the flagship Post Office Monthly Income Scheme to Rs 9 lakh. Now I will be able to have a variety of investment opportunities and the budget will surely benefit a lot of senior citizens."

FM also announced that the maximum deposit limit for Monthly Income Scheme will also be enhanced from Rs 4.5 lakh to Rs 9 lakh for single accounts, and Rs 9 lakh to Rs 15 lakh for joint accounts. K Chandrakala, a pensioner of the State government said that most of her savings were in the form of post office deposits. The enhancement of the deposit limit will now allow her with an increased monthly income.

Welcoming the decision, another retired Central government employee Kishan Lal however said that the lock period under SCSS should have been decreased to three years because the future is uncertain. He said that the premature withdrawals attract 1.5 per cent charge on the principal amount deposited. However, he said that it was going to benefit the senior citizens at large.