As a New Year gift, the government gave the retirees and senior citizens a rate boost in the senior citizens' savings scheme (SCSS) and the post office monthly scheme. While the SCSS rose from 7.6 per cent to eight per cent, the post office monthly scheme increased from 6.7 to 7.1 per cent. According to financial planners, anything in the range of 7.5 to eight per cent is a favourable rate for senior citizens across fixed deposits (FDs) and small savings schemes (SSS).
Explains Arijit Sen, a Sebi-registered investment advisor and co-founder of Merry Mind, a Kolkata-based financial advisory firm: "The government has specifically increased the interest rates of a few small savings schemes, which include the SCSS and Post Office Monthly Income Scheme. It's an indication that it's in the interest of senior citizens as they seek these schemes. The government's move has been to enable senior citizens to cope with the inflationary pressure."