During the Corona virus epidemic, banks have cut interest rates, causing the most damage to senior citizens. Due to the decrease in interest rates, many banks started special FD Schemes for senior citizens, in which senior citizens were offered up to 1% more interest than the general public.
Despite this, the top banks of the country like SBI are offering 6.2% interest to senior citizens on FDs ranging from 5 to 10 years. However, senior citizens get a little more interest in the small savings schemes of the post office. Today we are going to tell you about 4 saving schemes started for senior citizens that give guaranteed income with high returns to senior citizens.
Senior Citizen Saving Scheme (SCSS)
Senior Citizens get 7.4% interest annually in Senior Citizen Saving Scheme (SCSS). The duration of this saving scheme is 5 years, which can be extended for another 3 years. Senior citizens can invest up to Rs 15 lakh in SCSS. This scheme is for senior citizens who want higher returns on their investments.
In this scheme, interest is paid on a quarterly basis every quarter. Apart from this, under Section 80C of the Income Tax Act, senior citizens can claim tax deduction of up to Rs 1.5 lakh on investment in saving scheme. It is a small savings scheme run by the government.
Bank Fixed Deposits (FDs)
Almost all the big banks in the country are running the Senior Citizens Special FD Scheme for Senior Citizens. Under this scheme, the elderly get 1% more interest on fixed deposits (FD) than common borrowers.
Bank fixed deposits have always been one of the best investment options for senior citizens. Senior citizens in Bank FD have the option of taking interest on a monthly, quarterly, half-yearly or annual basis.
Many banks like SBI, HDFC and ICICI are running special FD schemes for senior citizens till 30 June 2021. Many small banks are offering up to 7% interest on Bank FD to senior citizens. However, big banks are offering 6.2% to 6.5% interest. Senior citizens can get FDs of 5 to 10 years if desired.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Pradhan Mantri Spend Vandana Yojana (PMVVY) is a retirement reduced pension scheme for senior citizens run by Life Insurance Corporation (LIC). Senior citizens can avail the benefit of this scheme till March 31, 2023. Under this scheme, senior citizens get pension at 7.40% per annum, which is paid every month. Its duration is 10 years.
Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS) is a monthly income scheme of 5 years duration. After investing once in this Yajna, interest continues to be paid at the same rate for the entire 5 years, that is, maturity. Presently, senior citizens are getting 6.6% interest annually in this scheme.
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