PMVVY is an efficient possibility for aged
If you’re a senior citizen in search of an everyday revenue, the Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed scheme bought by means of Life Insurance Corp. of India, which may present you an everyday assured revenue. A senior citizen aged 60 years and above can put money into the scheme to obtain month-to-month, quarterly, half-yearly and yearly pension.
The rate of interest on PMVVY is asserted by the federal government through the begin of the monetary yr in April. This yr’s charge is but to be introduced. Until final yr, it was providing an rate of interest of seven.4%, equal to its different Senior Citizens Savings Scheme (SCSS).
The PMVVY has a tenure of 10 years and one is required to make a lump-sum fee. Investors would get 7.4% for your complete tenure of 10 years.
Senior residents can draw a minimal pension of ₹1,000 per 30 days, relying on the quantity invested. The most quantity that may be withdrawn is ₹9,250 per 30 days. One can make investments as much as ₹15 lakh on this scheme. An funding of ₹162,162 can fetch a minimal pension quantity of ₹1,000 per 30 days beneath the scheme.
PMVVY is commonly in comparison with SCSS. While returns from SCSS and PMVVY are comparable, specialists usually want SCSS resulting from its decrease tenure and higher liquidity.
However, in case you have exhausted your SCSS restrict of ₹15 lakh, you possibly can think about investing in PMVVY as there should not many choices that present predictable constant returns for the long run within the present unstable occasions.
Subscribe to Mint Newsletters * Enter a sound electronic mail * Thank you for subscribing to our publication.