If You Want Regular Income: Everyone wants their money to be safe, get good interest on it and get regular income on investment. Investments are also the most in need of regular income for senior citizens. To get a good return, senior citizens can invest in Pradhan Mantri Vyay Yojana, Senior Citizen Savings Scheme, Post Office Monthly Income Scheme and Fixed Deposit Scheme of various banks. The scheme pays senior citizens monthly or 3 months interest, so that the senior citizen can run his own expenses. Find out which of these schemes offers the highest interest.
Post Office Monthly Income Scheme (POMIS)
Senior citizens can invest in Post Office Monthly Income Scheme for 5 years.
It currently earns an annual interest of 6.6% and pays interest to depositors every month. It requires an investment of at least Rs. You can invest up to Rs 4.5 lakh in this scheme and the joint account holder can deposit up to Rs 9 lakh. Can withdraw their money 1 year before depositing in this scheme. Interest will be earned on premature withdrawal. There will be a 2% penalty for closing an account within 1 to 3 years and a 1% penalty for closing an account within 3 to 5 years.
Senior Citizen Savings Scheme (SCSS)
Under this scheme, senior citizens can deposit money for 5 years and it can be extended for 3 years after completion of maturity period. Senior citizens get 7.4% interest in SCSS. It earns interest every three months. People above 60 years of age can deposit from Rs.1000 to Rs.15 lakhs. The scheme also provides tax relief under Section 80C of the Income Tax Act. Closing a premature account under this scheme means a penalty for closing before 5 years, which can range from 1% to 1.5% of the principal amount.
Pradhan Mantri Vyay Vandana Yojana (PMVVY)
Money can be deposited for 10 years under Pradhan Mantri Vyay Vandana Yojana. This year, depositors will get interest at 7.4%. This is a pension scheme for people over 60 years of age which was launched on 4th May 2017 for 3 years. Now its duration was extended to 3 years. Senior citizens can invest in this scheme till March 31, 2021. Under this scheme, pension is available at the end of the year. However the depositor can take interest on an annual basis every month or quarterly, if desired. After completion of 3 years in this scheme, the senior citizen can take 75% of the deposited money as a loan to meet his need.
Almost every bank in the country is running an FD scheme for senior citizens. It earns at least 0.5% interest from senior citizens and general customers. Some private banks offer higher interest rates of up to 1%. The customer can do FD in the bank for a minimum of 7 days to 10 years. While the bank pays around 4% interest on FDs less than 1 year, the average interest rate on 5 year FDs is 5.5% to 6%. Some private banks and small finance banks offer interest up to 8% on FDs. You can take interest on Bank FD every month if you wish. If You Want Regular