Best Investment Tips : The interest on traditional financial instruments, which have been a source of income for senior citizens who have retired from service, is continuously decreasing. Retired investors mostly keep their hard earned money in bank FDs, whose interest has now been limited to 5 to 6 percent. So where should he invest his money? Apart from bank FDs, there are many such instruments in which they can earn good returns by investing.
1 Senior Citizen Saving Scheme (SCSS)
The tenure of the Senior Citizen Savings Scheme is five years. Under this, more than one account can be opened but maximum investment of Rs 15 lakh can be done in it. The Senior Citizen Savings Scheme interest for the April-June quarter is 7.4 per cent. But the income earned from this is taxed and it gets added to your income from other sources.
Pradhan Mantri Vay Vandana Yojana (PMVVY)
The period of Pradhan Mantri Vaya Vandana Yojana (PMVVY) has now been extended to 31 March 2023. The entry age in this is 60 years. In the financial year ended March 31, 2021, it was getting 7.40 percent interest. In this, the interest rate will be fixed every year. In this also a maximum deposit of Rs 15 lakh can be made. On survival of the pensioner till the policy term of ten years, the amount invested and the final pension installment will be added.
3. Post Office Monthly Income Scheme (POMIS)
The post office monthly income scheme has a tenure of five years. In this, only once fixed interest rate is available till the end. The interest rate in the quarter ended June was 6.6 per cent. The maximum amount that can be deposited through a single account is Rs 4.5 lakh. Nine lakh rupees can be deposited through the same joint account.
careful! You will not be able to withdraw money from your own mutual fund, if this important work is not completed by the end of the month
4. Banking Fixed Deposit (FD)
Although the attractiveness of bank fixed deposits is waning, it is still the most liquid investment. That is, you can withdraw your money anytime. Its duration can range from seven days to 10 years. Interest is paid on monthly, quarterly, half yearly or yearly basis. At present, no common bank is giving more than six percent interest on FD. Senior citizens get half a percent more interest. SBI, ICICI Bank and EdFC Bank keep on launching FDs for senior citizens with tenures of more than five years.
5. Floating Rate Savings Bond
The 2020 Floating Rate Savings Bond 2020 has a tenor of seven years. Its interest rates will change every year. Its first coupon rate (it has been paid on January 1, 2021) was 7.5 percent. The coupon rate/interest rate is fixed on 1st July and 1st January every year. This coupon rate is linked to the current interest rate of the National Savings Certificate (NSC).