The Indian government changed the way interest is calculated, introduced a new plan, and modified investment limitations for its small savings plans in 2023. You should be aware of the following key improvements to various post office schemes.
List of Small Savings Schemes
- Post Office Savings Account (SB)
- National Savings Recurring Deposit Account (RD)
- National Savings Time Deposit Account (TD)
- National Savings Monthly Income Account (MIS)
- Senior Citizens Savings Scheme Account (SCSS)
- Public Provident Fund Account (PPF)
- Sukanya Samriddhi Account (SSA)
- National Savings Certificates (VIIIth Issue) (NSC)
- Kisan Vikas Patra (KVP)
- Mahila Samman Savings Certificate
New Limited Period Scheme
The Mahila Samman Savings Certificate, which was introduced in the Union Budget of 2023, is aimed at female investors. Many claim that this one-time program will last for two years, ending in March 2025. It has a maximum deposit limit of Rs 2 lakh, permits partial withdrawals, and gives an annual interest rate of 7.5%.
Post Office Monthly Income Scheme Update
The 2023 budget raised the limit from Rs 4 lakh to Rs 9 lakh for customers with single accounts and from Rs 9 lakh to Rs 15 lakh for those with joint accounts.
Senior Citizens Savings Scheme Update
With the increase in the Senior Citizens Savings Scheme (SCSS) maximum investment limit from Rs 15 lakh to Rs 30 lakh, seniors now have access to bigger deposits and better interest rates.
PPF Premature Interest Calculation Update
As of the start of the current five-year block term, interest on premature closure under the Public Provident Fund Scheme, 2019 will be 1% less than the usual credited interest.
PPF Premature Interest Calculation
If a five-year account is prematurely closed after four years, interest will be paid at the rate of four per cent for Post Office Savings Accounts.
With these modifications, post office savings plans should be more adaptable, easily accessible, and attractive to a wider variety of investors.
