Further concessions and changes to post office deposits; Attention those who are preparing to invest in the new year

 

The central government has made further relaxations in the most popular investments, the Post Office Light Savings Scheme, in the calendar year 2023. The rules for schemes including Public Provident Fund (PPF), Senior Citizens Savings Scheme and Post Office Time Deposit were revised and interest rates and investment limits were raised this year. Those who want to start small savings plans in the new year should be aware of these changes.

Senior Citizen Savings Scheme

The difference lies in the time limit for opening the account of Senior Citizen Savings Scheme, a simple savings scheme for senior citizens. According to the gazette notification dated November 9, retirement benefits can be invested in the Senior Citizen Savings Scheme within three months from the date of receipt.

Investors above 55 years of age but not yet 60 years of age should invest the early retirement benefits in the Senior Citizen Savings Scheme within 1 month. This is the change

In the Senior Citizen Savings Scheme, the tenure of the investment can be increased without any limit from now on. The tenure should be extended in blocks of 3 years. Earlier only one time extension was allowed. At the same time, a separate application should be submitted each time. There is also a change in interest earned on extension of tenure. If the account is extended on maturity then the rate of interest applicable to the scheme on the date of maturity or the date of extension of the deposit will be charged henceforth.

Investment limit

 The investment limit of the Senior Citizen Savings Scheme has been increased to 30 lakhs in 2023. The investment limit was doubled from Rs 15 lakh in the last budget of FY 2023. 30 lakhs can be deposited from April 1. The current interest rate of 8.20 percent has been fixed from April 1.

Post Office Time Deposit

 As per the notification issued by the Union Finance Ministry on November 7, 2023, there has been a significant change in the pre-maturity withdrawal. Changes have been made in the calculation of interest charged on withdrawal of earlier deposits.

 Deposits in a five-year Post Office Time Deposit Account are withdrawn at the Post Office Savings Account rate if withdrawn after four years of opening the account. Post Office Savings Account currently pays 4% interest.

 As per existing norms, if a five-year time deposit account is closed after four years from the date of deposit, interest will be calculated at the rate applicable to a three-year time deposit account.

Mahila Samman Savings Scheme

 Mahila Samman Savings Scheme is a new savings scheme launched by the central government in 2023. The Women Only Savings Scheme was launched on April 1, 2023. Up to Rs 2 lakh can be invested for a period of 2 years. The interest rate is 7.50 percent. Unlimited accounts can be opened. Account must be opened by March 31, 2025.

 Small Savings Schemes

 Small savings schemes are investment options supervised by the Department of Economic Affairs under the Ministry of Finance. There are 9 small savings schemes available namely Recurring Investment (RD), Public Provident Fund (PPF), Sukanya Samriddhi Yojana, Mahila Samman Saving Certificate, Kisan Vikas Patra, National Savings Certificate and Senior Citizen Savings Scheme.