The PPF accounts of myself (73 years) and my spouse (67 years) have matured just lately. We each have been in personal jobs. Hence no month-to-month pension is acquired. We have some curiosity revenue from Bank FDs. Please advise as to the place we will safely make investments this PPF maturity proceeds in order that we will get month-to-month / quarterly curiosity at higher charges in comparison with financial institution FD charges that are most 6% as of now with none danger to the capital.
It has actually turn into very troublesome for senior residents to outlive in low rate of interest period specifically when they don’t have any avenue to complement their curiosity revenue. In my opinion you could have the next three choices to take a position your matured quantity of PPF account giving your higher returns and that too with none danger to the capital.
First of all, you each can make investments individually in Senior Citizen Saving Scheme (SCSS). Interest on SCSS is payable quarterly. Currently the speed of curiosity is 7.4% p.a. Though the rate of interest for SCSS is introduced each quarter by the federal government however the rate of interest will get mounted for the entire tenure of 5 years on the price relevant on the time of constructing the deposit. You could make a number of deposits underneath SCSS however at no time limit the combination of deposits in all of the accounts opened underneath SCSS can exceed the edge of fifteen lakh rupees. If you would like you possibly can lengthen the tenure by two extra years on the time of maturity.
Secondly along with 15 lakhs every in SCSS, you each can moreover make investments Rs. 15 lakhs individually in Pradhan Mantri Vay Vandana Yojna (PMVVY). This is an annuity scheme with return of premium. This scheme is managed by Life Insurance Corporation of India for presidency. Presently in PMVVY additionally you get 7.4% of return p.a. for ten years of its tenure. You have choice to go for month-to-month, quarterly, half yearly and yearly fee choices and the efficient yield will change accordingly.
The stability quantity you possibly can put money into Floating Rate Saving Bonds of Reserve Bank of India. The price of curiosity payable on these bonds in contrast to SCSS and PMVVY is floating and will get modified each six months. The curiosity payable on these bonds is benchmarked in opposition to curiosity payable on National Saving Certificate and is greater by 0.35%. Presently the speed of curiosity payable on these bonds is 7.15% p.a. Interest on these bonds is paid on thirtieth June and thirty first December yearly. These bonds have a tenure of seven years. One can make investments any quantity underneath these bonds with out there being any higher financial restrict.
Balwant Jain is a tax and funding skilled and will be reached on [email protected] and @jainbalwant on Twitter
Subscribe to Mint Newsletters
* Enter a legitimate e-mail
* Thank you for subscribing to our publication.