Amid the Covid-19 pandemic, the banks had lowered the rates of interest. Senior residents in search of mounted common earnings have been hit probably the most on this falling rate of interest situation. Top banks, together with State Bank of India (SBI) supply most 6.2% to senior residents on their mounted deposits with a tenure between 5-10 years, publish workplace small financial savings schemes present comparatively larger fee. So let’s check out a few of the funding choices the place senior residents can park their hard-earned cash to get a assured common earnings.
Senior Citizen Saving Scheme (SCSS)
Senior Citizens Savings Scheme (SCSS) is a government-run small financial savings product which presently gives 7.40% every year. SCSS has a tenor of 5 years, which might be prolonged by one other three years. However, the higher restrict for investing in SCSS is ₹15 lakh. SCSS fits senior residents in search of a excessive mounted fee of return and a daily earnings on a quarterly foundation. Investment in SCSS can be eligible for tax deduction as much as ₹1.5 lakh every year below Section 80C of the Income-tax Act, 1961.
Interest fee: 7.4 per cent
Payable: Quarterly
Tenure: 5 years
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Special mounted deposit (FD) scheme for senior residents
Bank mounted deposits have all the time been a preferred alternative for many senior residents. Bank FDs supply month-to-month, quarterly, half-yearly or annual rate of interest payouts. Some banks like SBI, ICICI Bank and HDFC Bank supply particular deposits to senior residents on deposits of 5-years and above. These particular FDs are efficient until 30 June 2021. Most Small Finance Banks are providing an rate of interest of above 7 per cent on a few of their tenure to senior residents.
Interest fee: More than 6% and above 7% in some Small Finance Banks
Payable: Monthly, quarterly, half-yearly or annual curiosity
Tenure: 5 years to 10 years
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY (Pradhan Mantri Vaya Vandana Yojana) is a retirement cum pension scheme for senior residents. The scheme is operated and managed by Life Insurance Corporation (LIC). PMVVY scheme has been prolonged as much as 31 March 2023. At current, the scheme is offering assured pension at 7.40% every year payable month-to-month.
Interest fee: 7.4 per cent
Payable: Monthly
Tenure: 10 years
Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS) has a tenure of 5 years and as soon as invested the rate of interest continues to stay the identical until maturity. Currently, for the quarter ending June 2021, the rate of interest is 6.6 per cent every year.
Interest fee: 6.6 per cent
Payable: Monthly
Tenure: 5 years
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